steel manufacturers plan to strengthen their relationship with the Middle
East market, especially Saudi Arabia, according to remarks made during the
second day of the First International Saudi Iron and Steel Conference on
is a natural supplier for Middle East given its position on the Indian
Sea," V.R. Sharma, managing director of India's Jindal Steel and
industry will definitely grow and more investments will come from India to
Saudi Arabia," Sharma added, highlighting that the iron ore hubs
identified in Saudi Arabia as potential opportunities. In addition, the
company is hoping to seek partnerships for railway structures in the
to Sharma, the Indian railway industry consumes 1.7 million mt of steel
annually. Steel Authority of India Ltd. contributes 1 million mt towards
the total consumption, while Jindal Steel and Power contributes 700,000 mt.
Steel and Power, a unit of Jindal Group, has a total production capacity
of 50 million mt of steel, out of which 2 million mt is produced at its
Middle Eastern facility in Oman.
company plans to increase its investment in the Middle East as the Indian
government announced plans to increase its steel production capacity to
300 million mt by 2030. The country was ranked second largest steel
producer in 2018, after China. Different panels at the conference also
noted that sentiment was positive in the Indian steel market following
also said that the casting industry is the future in Saudi Arabia and
expressed interest in possible investments. "Indian companies are
very keen to participate as investors in the Middle East and Africa. Our
appetite is for 2 million mt to 3 million mt capacity, nothing big like
China," he added.
Chatterjee, secretary general and executive head of Indian Steel
Association, also said that the association would like to play a vital
role towards achieving Saudi vision 2030.
industrialization and organization goes, steel follows. We have seen that
before as well," Chatterjee said. "We believe that Saudi and
Indian 2030 strategies will generate synergies for both countries,"
Vukusic, general manager of Metinvest's gulf branch, also expressed
interest in the kingdom's growing steel industry. The Ukrainian company
exports most of its steel products to Europe or the Middle East, Vukusic
said in a presentation.
is a stable and predictable player in the region. It's on the right track
as the country's national currency rate has not seen any substantial
movement over the last three years. You cannot say that for many countries
these days," he added.
company has focused on exporting steel plates at the moment, but plans to
expand its product-base for the Gulf Cooperation Council, or GCC, markets
to mainly DRI pellets and hot-rolled coil. Metinvest will start production
of DRI pellets in the second quarter of 2020 with 67.5% Fe content and
2.8% Silica and Aluminum oxide.
plant will have an annual production capacity of 2.1 million mt to 2.3
million mt. In addition, the company will start production of hot-rolled
coil at its Ilyich Iron & Steel Works at Mariupol by the
fourth-quarter. The plant has an annual production capacity of 2.5 million
and Ukraine have home-based advantage, being rich in iron ore. If Saudi
Arabia wants to grow and expand its steel industry, the government needs
to utilize its home-grown advantage -- natural gas, Peter Marcus, managing
partner of World Steel Dynamics said during the conference.
conference chairman, Rayed Abdullah al-Ajaji, closed the conference by
noting that the Saudi Arabian government needs to look to its natural gas
assets if it wants to grow its steel industry, as recommended by World
Steel Dynamics' Marcus. Ajaji, CEO of Universal Metal Coating Co. and
chairman of the Saudi National Committee of Steel, also plans to work
closely with Indian Steel Association's Chatterjee to look into the
expansion of the steel industry in Saudi Arabia.