26/01/2016 06:20 AST
Steel production in MENA region fell by 7.39% to 65.259 million tons in 2015 as compared to 70.463 million in 2014.
Regional producers were under pressure because of decline in oil prices, influx of steel exports from China and political tension throughout 2015.
In Q4 2015, except UAE, every country posted decline in steel output as well. In total, MENA region output in Q4 dropped by 10.78% as compared to similar period last year. Interestingly, the compiled data shows that steel production had decline in Q1, Q2 and Q3, consecutively.
Saudi steel output decreased by 9.98% in 2015 to 5.662 million tons YoY. Perhaps, the significant decline is seen in Q4 2015 where output was recorded 1.195 million tons, reflecting a decrease of 26.6% as opposed to 1,628 million tons in Q4 2014. The outlook for Saudi steel industry is not bright in the wake of significant drop in oil revenue and many construction projects are either cancelled or subject to delays.
UAE steel output statistics were consistent and standout in 2015. UAE produced slightly more than 3 million tons in 2015 as compared to 2.4 million tons in 2014, reflecting significant increase of 25.69%. UAE Q4 steel output was also up by 15.98% to 784,000 tons.
Crude steel production of the biggest steel producer in Middle East, Iran, was slightly down by 1.36% to 16.11 million tons, while in Q4 output was 3.879 million tons, fell by 9% quarter on quarter. With the lifting of sanctions and business with rest of the world coming to normalcy, Iranian steel output is expected to increase in 2016.
Qatar produced 2.593 million tons of crude steel in 2015 YoY, posting a drop of 14.9%. Crude production in Q4 2015 was also down to 605,000 tons; falling by 23.42% as compared to Q4 2014.
In 2015, Turkey’s crude steel production decreased by 6.49% YoY to 31.825 million tons. Their output in Q4 2015 was also down to 8.044 million tons as compared to 8.235 million tons in Q4 2014.
Egypt’s crude steel production was dropped to 5.515 million tons in 2015 YoY, a decrease by 14.96%. The Q4 2015 output was also declined significantly by 31.91% to 1.180 million tons. Unlike its peers in the region, the future of steel sector in Egypt looks optimistic in the wake of new projects announced by the government which could trigger the production growth in 2016. However, foreign exchange and energy shortage will need to be addressed for the sector to show growth.
Morocco posted 2.79% increase in crude steel output to 516,000 tons in 2015. However in Q4 2015, their crude steel production was limited to 90,000 tons, reflecting 25% drop as correspond to Q4 2014.
Libya output was dropped by 63.64% to mere 352,000 tons in 2015 YoY. Apart from political instability and war situation, there was energy crisis as well earlier this year which forced Libyan steel manufacturer, Lisco, to shut down for couple of months.
Saudi Gazette
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