The Middle East has experienced a significant upsurge in demand for stainless steel in recent months. This can be attributed to various factors, including infrastructure development projects, industrial expansion and a thriving construction sector across the region.
According to an analysis by the Organization of the Petroleum Exporting Countries, Gulf Cooperation Council (GCC) members account for 25% of global crude oil production. The region’s increasing demand and production of oil/gas have led to the initiation of numerous seamless pipeline projects.
In this context, SeAH Gulf Special Steel has made a US$ 270 million investment in a seamless stainless steel pipe factory. Once operational in 2025, the facility will have the capacity to produce 20,000 tonnes of seamless pipes and tubes annually. This investment further reflects the growing importance of stainless steel in various industries.
Meanwhile, Saudi Arabia is currently witnessing remarkable growth in its real estate sector. Several agreements, worth a total of US$ 2.13 billion, have been made to develop various infrastructure and facilities projects in various communities around the Kingdom. This surge in construction activity is also contributing to an increased demand for stainless steel.
The United Arab Emirates is actively transitioning to sustainable materials, with a particular focus on alloys like stainless steel. This shift in demand is expected to impact sectors such as building and construction, aerospace and defence. In the current year, the UAE has recorded the highest increase in demand for industrial steel in the Middle East, solidifying its position as the largest consumer in the GCC region.
With major investments in seamless stainless steel production and this focus on sustainable materials, the region’s stainless steel market is poised for further growth and development in the coming years.