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Local firms address a major part of the rebar demand in the UAE.

UAE steel market can offer competitive prices says expert

DUBAI, November 20, 2014

Local steel manufacturers are capable of offering internationally competitive prices in the UAE, leveraging the steady growth of the construction and infrastructure development sectors in the country, according to an industry expert.

Bharat Bhatia, chief executive officer of Conares, which operates the Gulf region’s second largest steel plant in the private sector, said the local manufacturers should increase their production to cater to the current demand, gradually reducing the market share for the import of steel products in the UAE.

About 60 to 70 per cent of demand for steel rebar in the UAE market is being addressed by local firms and the rest is covered by imports, he said. The demand in the UAE rebar market is stable at about 3 to 3.3 million tonnes for the current year.

Speaking on the sidelines of The Big 5 International Building and Construction Show 2014 which concludes today (November 20), Bhatia said the steel market in Dubai is currently at a balanced state.

“Dubai steel market has enough capacity to support the new wave of infrastructure developments that is planned up to 2020. The technologies and capacity to cater to this requirement immediately are in place and operating,” he said.

The demand for steel products in the UAE has increased by 15 per cent in 2014, compared to last year, he said. “We expect the year 2015 would witness more demand compared to the current year. The forward indications remain promising as projects continue to be moving on, albeit there have been concerns on liquidity,” he added.

Conares, a leading provider of downstream steel products in the Gulf, showcased its range of products including rebars, ERW (electric resistance welded) and galvanised pipes at The Big 5 Dubai 2014.

Conares, being a key player in steel manufacturing and trading of steel pipes and steel rebar for both the global and regional suppliers, has a 15 per cent share of the UAE market in its specific product segments.

It currently supplies about 350,000 tonnes of rebar, about 10 per cent of the total domestic requirement in the UAE. The company also supplies about 100,000 tonnes of pipes, which is around 25 per cent of the total market demand in the region.

Conares has recorded a double-digit growth this year and an 80 per cent utilisation of its capacity. The sales of Conares steel products increased manifold, and profit of the business also registered significant growth, he said.- TradeArabia News Service




Tags: Construction | Steel | market |

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