Posted on 22 Sep 2022
Rebar consumption in the construction sector contributes 80% of consumption in the Middle East and North Africa (MENA), but the region is heavily dependent on flats imports, which are forecast to increase. The region has excessive rebar production capacity but consumption will increase due to a number of large governmental projects, Kallanish notes.
"We should minimize our imports from other regions and focus on benefiting each other within the region. Rather than competing against each other, let us form a task force to devise a strategy how we can maximize our profitability," said Qatar Steel chief manufacturing officer Ahmed Kalifa during the second Saudi Iron and Steel Conference in Riyadh of which Kallanish is a programme partner.
"We must change our direction and move towards flat products," Kalifa underlined.
Saudi Hadeed president Salah Al Ansari agreed with Ahmed Ezz, founder and owner of Egypt's Ezz Steel, who called to join forces to invest in basic manufacturing industries.
Ahmed Ezz during his speech pointed out that infrastructure alone cannot sustain consumption growth and questioned whether Egypt or Saudi Arabia can become major automotive producers that use steel produced within the region (see Kallanish passim).
"Saudi economy is reviving and rebounds from the pandemic. Strategies are materialised under the Saudi Vision-2030 and Hadeed focuses on product differentation and announced the memorandum of understanding signed wth the Red Sea Development Company (TRSDC) over possible steel supply to the Red Sea Project. Hadeed will achieve its zero carbon emissions target by 2050 which is 10 year earlier than country's zero carbon target," Al Ansari added.
"In the scope of decarbonisation and green steel, a regulation is needed. The ongoing project in Mauritania for iron ore mining will be completed in 11 months," Al Ansari concluded.
Hadeed said previously its iron ore mining joint venture in Mauritania should carry out its first shipment by 2024 and will help boost the steelmaker’s raw materials security.
Source:Kallanish
