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29 March 2024

New projects boost demand for steel products in UAE

Published
By Staff

New construction projects in the UAE have boosted demand for the steel products in the country, according to private steel products manufacturer Conares.

“The steady rise in construction, with the announcement of major landmark projects in the UAE, has given way to a boom in the steel industry,” said Bharat Bhatia, CEO of Conares.

“The huge growth in the steel industry is a result of several factors, the primary reason being the new developments and announcements of new projects here. Further, the high-demand has also led most construction companies, developers and traders to turn to local producers, as imports of debars normally takes a minimum of 60 days to arrive in Dubai.

“Furthermore, UAE financial institutes are very positive to support the steel industry which itself is good sign for the entire industry and future developments. Local producers are able to offer internationally competitive costs. That, coupled with the reliability of delivery locally, which is far better and easier compared to imports from outside UAE, have added immensely to the growth of the sector in the region,” he added.

Conares has an annual production capacity of over 750,000 metric tonnes, including 500,000 metric tonnes of rebar, and 250,000 metric tonnes of ERW pipe and 36,000 metric tonnes of galvanized pipes at its Jebel Ali facility in Dubai.

UAE-based steel products manufacturer Conares output has increased double-digit in the first quarter of 2014, reaching nearly 100,000 metric tonnes rebars.

The company said in a statement that the first quarter volume is almost equivalent to 50 per cent of the last year’s total tonnage

Total sales of Conares steel products has surged by 25 per cent sales as of the end of 2013. Profit of the business also registered significant growth of 45 per cent in 2013, compared to the same period in 2012.