Middle East steel demand to rise on reconstruction efforts

14 April 2013

Building in Iraq and post-Arab unrest states to drive 7.1 per cent growth in 2014

Growth in steel demand in the Middle East and North Africa (Mena) region is expected to increase in 2013 and 2014 driven by reconstruction in Iraq and post-revolution Arab countries, according to the World Steel Association (worldsteel).

Steel consumption is forecast to rise 3.2 per cent to 65 million tonnes this year, compared with an increase of 2.2 per cent in 2012. In 2014, demand is predicted to surge by 7.1 per cent.

“[Steel growth in Mena is] aided by reconstruction activities in the Arab Spring countries and Iraq as political turmoil in the region phases out,” Worldsteel said in its short-range outlook.

Consumption in the Middle East, excluding North Africa contracted by 1.2 per cent in 2012, but is expected to grow by 0.8 per cent and 6.1 per cent respectively in the next two years.

Growth in global steel demand is forecast to grow 2.9 per cent in 2013, compared with 1.2 per cent last year as consumption in Asia picks up demand and erosion in the EU is reduced.

Out of the global market, only African steel demand growth will be higher than Middle Eastern growth in 2014, according to worldsteel’s forecasts.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.