According to Arab Iron and Steel Union, Arab steel industry, whose production is expected to touch 20 million tonnes this year and 24 million tonnes by 2014 requires massive investments for enhancing its share in the world steel production. Demand for steel in the Arab world is expected to reach 60 million tonnes by 2014 necessitating imports.
Mr Mohamed Laid Lachgar secretary general of AISU said that the region should strive to attain self sufficiency by eliminating import gaps and become a net exporter. The Arab region is expected to contribute 2.7% of the world steel production by 2014 from the present level of 1.7%.
Mr Ali bin Hassan al Muraiki GM of Qatar Steel said that “An overview of the reality of development in our region reveals that the Arab region is witnessing a constant growth in its projects and that there is a need for optimal utilization and employment of the potentials and the national wealth in the development of Arab steel industry.”
Mr Al Muraiki said that the success of Arab steel industry will be achieved through the existence of mega projects with Arab investments which should focus on the existence of advanced technology that can compete not only in the Arab markets but also in the global arena as well as through reaching a stage of self sufficiency in the region, eliminating the import gap and the transition to the export stage. The new investments which are expected to be spent over the next 10 years are estimated to be USD 170 billion.
He said that all figures clearly reflect that the Qatari economy has achieved constant growth and surpluses in the budget and foreign trade and has built up reserves to be invested in diverse industrial projects that support our efforts to diversify income sources and reduce dependence on oil and gas.
According to Mr Lachgar, 2011 would witness another breakthrough of the Arab iron and steel industry after eliminating the consequences of the global crisis and receiving the signs of the return of the world economy back to its former activity. He said that Steel production is expected to be 20mn tonnes in 2011 and 24mn tonnes by 2014 and demand for iron and steel was expected to go beyond 60 million tonnes by 2014 widening the gap between the consumption and production and increased reliance on imports in view of the huge infrastructure requirements.
He added that the Arab steel mills are approaching to run with their full capacities and the steel prices are now up trending to compensate the losses of some steel companies during the months of the global economic crisis which were accompanied by the stoppage of many production lines. It is expected that in 2011 the Arab markets will also see increased coordination among steel leaders in the Arab countries under the efforts exerted by the AISU to achieve integration of this industry.
(Sourced from www.gulf-times.com)
