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Mena steel demand to rise over next two years

By Pramod Kumar
The Saudi Contractors Authority put the total value of ongoing projects in the kingdom at $1.5 trillion by the end of October 2023 Unsplash.com/Mads Eneqvist
The Saudi Contractors Authority put the total value of ongoing projects in the kingdom at $1.5 trillion by the end of October 2023

Steel demand in the Middle East and North Africa (Mena) region is expected to accelerate in 2024 and 2025 after a significant slowdown in the past two years, the World Steel Association (WSA) said in a report.

Demand is forecast to rise by just over 4 percent and 2.6 percent year on year to 57 million tonnes and 59 million tonnes in 2024 and 2025, respectively. 

Real estate consultancy Knight Frank described Saudi Arabia in September 2022 as “the biggest construction site the world has ever seen” and this was before Riyadh won hosting rights for Expo 2030 and the World Cup 2034.

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The Saudi Contractors Authority has put the total value of ongoing projects in the kingdom at $1.5 trillion by the end of October 2023.

GlobalData, a London-based data analyst and consultancy, estimated the size of the UAE’s construction market at $94 billion in 2023 and expects annual growth of 3 percent between 2025 and 2028.

The London-based association projected demand to rise by 1.7 percent to 1,793 metric tonnes in 2024 and grow by 1.2 percent to 1,815 metric tonnes next year.

Although demand for steel across regions fell following a downturn in residential construction due to high-interest rates and high construction costs, recovery in the residential construction sector is expected from 2025 onwards.

According to the WSA, faster-than-expected disinflation and monetary policy easing will significantly boost steel-using sectors, particularly housing construction. 

The acceleration in global decarbonisation efforts can support global steel demand, the report said.

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