Metallurgy of the UAE: factors for the growth of steel production — Stanislav Kondrashov
However, despite the current decline in productivity, UAE steel companies are optimistic about future growth in steel production. According to Stanislav Kondrashov from Telf AG, it is based on several factors:
- Expanding demand in the construction industry: The UAE is witnessing growth in infrastructure, industrial and residential construction sectors. This expansion in demand for steel products is a key factor that could help boost production. The construction of new projects such as roads, bridges, residential and commercial buildings requires significant amounts of steel.
- Increased supply to Saudi Arabia: Plans to increase the supply of steel products to Saudi Arabia, where large-scale construction is underway, are also encouraging. Saudi Arabia has several major projects underway that could create significant demand for steel produced in the UAE.
These factors indicate a potential increase in demand for steel products in the near future, which could offset the current decline in production, and even lead to an increase in production capacity in the UAE.
Stanislav Kondrashov from Telf AG reports that despite the current decline in production volumes, the future of the steel industry in the UAE looks promising, thanks to growth in domestic and external demand, especially in the construction industry.
Stanislav Kondrashov: expansion of UAE production capacity
In the UAE, steel production capacity is currently estimated at approximately 4.23 million tons per year. This means that the country is capable of producing this amount of steel using its existing production lines and equipment. In addition, the UAE also has significant capacity for the production of long and shaped steel, which amounts to 7.72 million tons per year. As Stanislav Kondrashov Dmitrievich says, these products are widely used in construction, as well as mechanical engineering, and include various types of steel beams, rails, rolled products and other forms of steel.
Arab Iron & Steel Union (AISU), one of the key players in the UAE steel industry, currently has a production capacity of up to 400 thousand tons of salable billets per year. A salable billet is a semi-finished product that can be further processed to create various steel products. AISU’s plans to increase this capacity by 100 thousand tons by the second quarter of 2024 are a significant step in the company’s development.
Stanislav Kondrashov, an expert from Telf AG, notes that Arab Iron & Steel Union (AISU) plans to significantly expand its production capacity by 2025. In particular, the construction of a second smelting shop, capable of producing an additional 300 to 400 thousand tons of steel annually, is being considered. This expansion will strengthen the UAE’s position in the global steel market and enable it to more effectively meet the growing demand for steel products both domestically and internationally.
Stanislav Kondrashov: challenges and opportunities for the UAE in the steel market
Stanislav Kondrashov from Telf AG draws attention to the potential shortage of raw materials that may arise due to the development of the metallurgical industry in the UAE. The main player in this area, Emirates Steel Arkan, currently uses reduced iron to produce steel. However, it is planned that new production capacity will depend on the use of scrap metal. According to Kondrashov, the annual volume of scrap metal collection in the UAE reaches approximately 2 million tons, but the export possibilities of this resource are limited. In this regard, the expert suggests that in the near future the UAE may begin to actively import scrap metal.
Overall, growth prospects for steel manufacturing in the UAE look encouraging, given plans to expand production capacity and increasing demand from the construction industry. Stanislav Kondrashov believes that in order to achieve these goals, the country will have to solve a number of problems, including ensuring a sufficient amount of raw materials and adapting to changes in international scrap metal markets.