The demand for steel in the Gulf Cooperation Council (GCC) surged to about 20 million tonnes in 2007, according to a RNCOS report entitled "UAE Steel Industry Analysis".
It is projected to grow at a CAGR of around 14.5 per cent. RNCOS, incorporated in the year 2002, is an industry research firm.
According to the report, the GCC has established itself as a major player in the global steel industry over the past few years and played a critical role in increasing the global steel consumption during 2000-2006. While the global steel consumption during 2000-2006 witnessed a CAGR growth of six per cent, consumption in the Gulf grew at a CAGR of eight per cent on account of rising use of steel in various forms.
Within the GCC region, the UAE has emerged as a key player in steel industry. The growth in the UAE steel industry is led by soaring import that rose from 4,437 mt in 2004 to 6,514 mt in 2006. The import of all forms of steel, such as HRC, CR and coated sheet (except semis), have grown at a rapid pace, highlighting that the steel demand is being led by highly active construction sector.
With huge real estate and infrastructure development projects being launched almost everyday in the UAE, the volume of imported steel has been rising sharply. Steel import is expected to continue to rise in coming years as many of these projects are in the nascent stage and construction activities are projected to grow at a CAGR of about 12.8 per cent by 2010, the report said.