Export Expansion Despite Production Constraints:
In a surprising turn, Oman, despite lacking the internal capacity for corresponding slab production, has successfully expanded its export volume. This demonstrates the country's strategic positioning in the global steel trade, emphasizing its adaptability and ability to meet the rising global demand for steel products. From January to October 2023, the country recorded a substantial increase, reaching 1.53 million tons, showcasing a remarkable uptrend from 2022's 1.33 million tons and 2021's 700 thousand tons.
Key Importers and Market Share:
Oman's steel exports have found robust markets in key destinations, with China leading the charge in purchases totaling 609.1 thousand tons from January to October 2023. Indonesia closely follows with 410.4 thousand tons, and Thailand contributes significantly with 325.01 thousand tons. This underscores Oman's agility in capturing a diverse and competitive market share, solidifying its standing in the global steel export landscape.
In a broader regional context, the Middle East's steel industry dynamics are coming into focus. Oman's impressive export performance aligns with an overall regional upswing, exemplified by Iran's 3.5% year-on-year increase in steel production, reaching 3.1 million tons by the end of October 2023.
Vulcan Green Steel (VGS) Plant:
Oman's commitment to sustainable steel practices is further emphasized by the groundbreaking initiative—the Vulcan Green Steel (VGS) plant. This project marks Oman's pioneer entry into utilizing hydrogen as a raw material in direct reduced iron production.