New investments and production growth in the region are boosting its export potential and strengthening its importance in the steel sector.
The region accounts for 37.5% of world direct reduced iron (DRI) production. Iran has increased its production, while Saudi Arabia and the United Arab Emirates have seen declines. Despite this, total production in the region is expected to increase by 40 million tons in the coming years, thanks to joint projects by Japanese, Chinese and Indian companies.
Europe is becoming a strategic export market for the Middle East with growing DRI demand, while India may also demand high-quality pellets from the region in the long term. However, in the short term, pellet raw material supply may be in short supply and prices may increase due to China's supply restrictions imposed during the winter months.
The Middle East is expected to be the leader of low carbon transformation in the global steel industry with its energy costs and infrastructure investments.
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