Crude steel production in the four Middle Eastern countries covered by the World Steel Association’s monthly report increased 9.4% on-year in June to 2.66 million tonnes, Kallanish learns from worldsteel. Output in the first half of 2017 thus grew at the same rate to 15.49mt.

The June growth occurred despite a -20.9% slump in production at Saudi Arabia’s largest producer, Sabic, to 401,000t. This the third month that Sabic’s production has plunged on-year in 2017 after March and May. This took six-month output down -5.3% to 2.52mt and shows Sabic’s production woes have resumed following a brief recovery in the fourth quarter of 2016 and Q1 this year.

The region’s largest producer, Iran, saw output surge 16.4% in June to 1.79mt, taking six-month output up 13.7% to 9.95mt. Much of Iran’s output growth has been driven by increased steel exports, mainly at Khouzestan Steel, Esfahan Steel and South Kaveh Steel. In the three months through 21 June Iranian slab exports surged 211% on-year to 944,000t and rebar exports soared 175% to 187,000t (see Kallanish 19 July).

The country’s flat products consumption is also recovering, however. Hot rolled coil, cold rolled coil and coated coal apparent use grew 24%, 60% and 53% respectively in the three months to 2.11mt, 786,000t and 485,000t.

Crude steel production in United Arab Emirates increased 25.8% in June to 268,000t, taking six-month output up 16.6% to 1.73mt. The country’s mills have been boosted by minimal Turkish-origin rebar imports into UAE since last summer. Moreover, merchant billet mill Arabian Gulf Steel Industries is ramping up following its commissioning in May 2016.

Qatar saw crude steel production rise 16.3% in June to 207,000t despite its diplomatic dispute with Saudi and its allies that is preventing it from exporting to some neighbouring countries. Six-month output rose 2% to 1.3mt.

Egypt, meanwhile, saw crude steel output surge 40.9% in June to 531,000t, taking six-month output up 36.9% to 3.11mt. This is mainly due to the commissioning in summer 2016 of Egyptian Steel’s new Beni Suef plant, as well as easing gas shortages.