UAE leads Middle East's return to steel output growth in June
Crude steel production in the four Middle Eastern countries covered by the World Steel Association’s monthly report increased 5.3% on-year in June to 2.46 million tonnes, Kallanish learns from worldsteel. Growth thus returned to the impressive rates seen in the first quarter after a drop in April and a marginal increase in May.
The Middle East’s Q2 output was at 7.24mt, while first half of 2015 production rose 2.9% to 14.27mt. This made it the fastest growing region in H1 after Oceania.
United Arab Emirates lead the way in June with a 42.3% on-year surge in crude steel production to 265,000t, while first-half output increased 14.6% to 1.48mt. UAE’s only major crude steelmaker, Emirates Steel, could not be contacted for comment. The firm was reported to have one rolling mill under maintenance in June, meaning it could have produced more billet for stock or merchant sales.
Saudi Arabian steelmaking giant Sabic reported a 10.3% increase in crude steel output in June to 540,000t, taking six-month output up 0.2% to 3.12mt. Saudi market sources tell Kallanish high inventory levels, especially for rebar, remain a concern among most steelmakers other than Sabic. The business environment, moreover, has worsened since Saudi launched in March airstrikes against neighbouring Yemen, while some steel-consuming projects are reported delayed due to changes in management following the Saudi cabinet reshuffle in April.
The region’s largest producer, Iran, saw crude steel production rise 1.5% in June to 1.43mt, taking six-month output up 4.5% to 8.37mt. Iranian production growth has been slow owing to increased Chinese exports onto the world market and a downturn in various Iranian economic sectors such as housing (see Kallanish 17 June). However, following the nuclear deal with western powers last week, Iran is seen potentially stepping up steel exports and enjoying a domestic consumption boom.
Qatar saw crude steel output decline -10.2% in June to 230,000t, meaning six-month output also fell -10.2% to 1.3mt. In February Qatar Steel stopped production at its oldest electric arc furnaces nos. 1 and 2 until further notice, signalling a retreat from the merchant billet market. The steelmaker’s production accounts for over 97% of crude output in that country.
June production in Africa mostly made for dismal reading. Egyptian output plunged -34% to 450,000t, while Libyan production plummeted -36% to 50,000t. South African production did, however, increase 2.3% to 530,000t after falling on-year in each month between January and April, and posting flat growth in May. First-half output in Africa thus declined -9.7% to 6.86mt.
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Anonymous
Very good overview of the weekly steel market.
Anonymous