Industry experts and analysts are projecting a 15% growth for the steel industry on the back of rising requirements from the UAE, Saudi Arabia and Qatar.
As per report, 50% of the respondents in a survey among the exhibitors at the recently concluded SteelFab trade fair in Sharjah expected the sector to grow 15% in 2012, while 42% projected a 10% and the rest a 25% expansion.
With the regional economies, especially oil producers, set to consolidate their growth in 2012, exhibitors who took part in the survey believe that demand for steel will arise from the expected buoyancy of infrastructure, oil & gas and construction sectors.
Mr Saif Mohammed Al Midfa director general of Expo Centre Sharjah said that "Steel is the basic raw material used in various sectors from infrastructure to heavy industries and from construction to white goods. Demand and price movement of steel can predict the condition of the overall economy. The positive outlook projected by the exhibitors at SteelFab augurs well for the greater economic growth of the region."
Steel demand in the UAE has soared in the past few years in the backdrop of continuing infrastructure projects, cheap and reliable gas and energy supply, growing investments in the construction industry and other core sectors.
According to latest market research, the apparent consumption of finished steel products is expected to reach more than eight million metric tonnes by 2014 end.
In Sharjah, apart from the latest announcement of AED 20 million housing projects, 31 projects designed to boost business, investment and tourism in the Emirate have been approved and several of these projects are already under way.
Mr Shakeel Siddique, business development manager at Dawood Sons Group, said that "The market is gaining more confidence. Overall, we can see great potential. Customers who have been quiet for sometime are now placing their requirements."
The respondents said that the steel sector is also looking at Saudi Arabia, the largest Arab economy and Qatar to generate the bulk of the demand.
Saudi Arabia has become one of the favorite destinations for steel majors due to its booming construction sector, with the consumption of iron and steel in the Kingdom reaching around 16 million tonnes in 2010. The country is expected to sustain its leadership in construction activities in entire Middle Eastern region with an estimated USD 400 billion investment on large development projects during the next five years.
The steel industry will also be eagerly anticipating the USD 97 billion GCC road and railway projects, including the USD 30 billion GCC rail network.
Qatar is not far behind, with about USD 140 billion being allocated for developing infrastructure ahead of the 2022 FIFA World Cup promising to generate massive demand for steel products. Even though majority of the exhibitors felt that bulk of the contracts for the Qatar projects are expected only by the next year, they are looking forward to business to start trickling in by this year itself.
Mr Kamlesh T Gangwani MD of Kaltenbach UAE said that "We are expecting more capital investment in the steel industry."
Mr Rizwan Shahad MD of GFM Voortman said that "The market is picking up and is ready to invest. We expect our business to grow 25%."
The exhibitors at SteelFab 2012 came from Australia, Austria, Belgium, China, Egypt, Finland, France, Germany, Greece, India, Iran, Italy, Korea (South), Kuwait, Lebanon, Malaysia, Netherlands, Singapore, Spain, Sweden, Switzerland, Taiwan, Turkey, UK, US and the UAE.
The exhibitors at SteelFab, who came from more than 25 countries, represented sectors such as material handling, pipe and tube machinery, machine tools, welding and cutting, surface preparation and finishing, machining and other allied engineering disciplines.
The next edition of the show will be held at Expo Centre Sharjah from January 14th 2012 to January 17th 2013.
(Sourced from www.rradearabia.com)
