MENA crude steel output rose by 7 pct in August 2016 YoY

According to the latest statistics by World Steel Association, crude steel production in the MENA region has increased by 7.06 pct YoY to 5.578 mln tons in August 2016 as compared to 5.210 mln tons in August 2015.

In August 2016, UAE steel production grew significantly. Iran & Turkey’s crude steel statistics are also showing positive trend but Saudi Arabia & Egypt posted decline in crude steel production.

Iran posted 1.350 mln tons in August 2016 as compared to 1.249 mln tons in August 2015, up by 8.09 pct YoY. During March 20-August 21 2016, Iranian steel exports increased by more than 50 pct to 2.31 mln tons as steelmakers there have diverted their sales to overseas market to compensate the slow domestic demand.

Turkey’s crude steel output also increased by 12.86 pct to 2.853 mln tons in August 2016 YoY. Turkish steel output figures were positive for most of the year supported by stable demand. Total finished steel consumption in first the seven month of 2016 had increased by 5.2 pct to 20.83 mln tons as compared to similar period last year.

UAE posted remarkable increase in steel production in August 2016. Steel output increased by 40 pct to 266,000 tons as compared to 190,000 tons in the similar period last year. Construction sector, major consumer of steel, remains vibrant and more construction contracts are expected to be awarded in the near future which will keep the steel demand stable.

Saudi Arabian steel output during August 2016 was 400,000 tons, down by 19.68 pct when compared to 498,000 tons in August 2015. Saudi Arabian government has started cost cutting reforms and reports suggested that USD 20 bln worth of projects might be scrapped. Apparently, this will have an impact on the construction activities and consequently steel demand in the country in future.

Steel production in Qatar plunged by 10.71 pct to 200,000 tons in August 2016 YoY.

Egypt produced 433,000 tons of steel, declining by 4.42 pct when compared to 453,000 tons output achieved during August last year. Local industry is facing number of issues including higher gas prices and USD shortages. Eventually, the industry is waiting for the implementation of the government approved decrease in the gas price so as to get a breather from the crisis.

Libyan steel output was 31,000 tons in August 2016 as compared to mere 3,000 tons in the same month last year. Morocco steel output decreased by 30.77 pct to 45,000 tons YoY.

Source: MEsteel