Middle East

The Middle East is poised to play a significant role in the integration of green hydrogen into the direct reduced iron (DRI) route to steel production. By 2030, the region’s steel sector is expected to reduce its emissions by 30%, driven by a transition from natural gas-based DRI plants to hybrid plants utilizing green hydrogen, among other low-carbon technologies.

Sohar Port and Freezone in Oman is exploring green technologies, including Hybrid DRI, to become a hub for sustainable manufacturing. At the same time, Saudi Arabia’s Vision 2030 initiative is aiming to reduce the reliance on oil by promoting sectors such as recycling, with the metals recycling industry poised to benefit from this diversification strategy.

Despite the global slowdown in recent years, the Gulf Cooperation Council region has recorded steady demand for long steel products. Steady growth has been seen in the UAE market compared to 2023. Regional steel production capacity is expected to reach 175 million tonnes by 2030, with the UAE contributing 20 million tonnes and Saudi Arabia 69 million tonnes.

The Turkish market for HMS 1&2 climbed 1.6% at the start of October. HMS 1&2 scrap prices have dropped by almost 10% in the Saudi market as it heads towards closer alignment with the Turkish market.