Posted on 29 Nov 2018
Emirates Steel (ESI) expects rebar consumption in United Arab Emirates to decline -15% on-year in 2018 to 3.4 million tonnes. This is the result of various factors, including “… the lack of liquidity in the market and shortage of new projects,” a company spokesman tells Kallanish.
Local market participants said earlier this month that UAE rebar demand had picked up following a protracted period of sluggishness that extended from June beyond its typical summer boundary. Various large steel-consuming projects were completed this year and some sources said the next round of investment is expected to begin in 2019.
The UAE has the most active construction market in the Middle East, with projects estimated at $513.5 billion, according to ESI. “There are market challenges, but Emirates Steel remains confident of the opportunities for growth, given that in the third quarter of 2018, 425 projects were awarded in the UAE with a total value of US $12.4 billion, up by 19% compared to the second quarter of 2018,” the firm said earlier this week.
UAE real Gdp growth is forecast to accelerate to 2.8-2.9% on-year in 2018 from 0.8% in 2017, and to 3.2-3.7% in 2019.
UAE crude steel output, of which almost 90% is accounted for by Emirates Steel, fell -2.9% on-year in January-October to 2.66mt, according to worldsteel.
