Export of Flat steel from India has seen a considerable rise between Apr’13 and Nov’13. Flat steel exports have risen in November to 0.74 MnT as compared to April month’s 0.25 MnT, registering a growth of approximately 200 per cent . Out of the total exports of Flat Steel products, export to Middle East countries has seen a remarkable growth.
Source: Steelmint
Total Flat steel exports to Middle East countries have seen a growth of 100 per cent between April and November this year. UAE has seen a healthy demand for flat steel. The demand for Steel in UAE is expected to be around 3 MnT for 2013. India’s export to UAE has seen a 43 per cent jump during April and November.
Middle East countries offer a good market for Asian producers as these countries are developing big infrastructure projects. Moreover, it is to be noted that countries like Saudi Arabia depend highly on imports to cater to the needs of its infrastructure sector like railways and energy projects. As per reports, more than 50% of domestic steel consumption in Saudi Arabia is met through imports.
Previously, major Flat steel producer Essar has engaged in Middle East region by securing an approval from GASCO for supplying high grade plates and pipes for its Energy Projects.
Perhaps it seems that producers are seeing better realizations for their exports due to long term contracts on account of a weaker domestic currency. As home markets see no signs of revival, producers are focusing more on the global markets.
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