Emirates Steel (ESI) will increase the output at its heavy sections mill from 25,000-30,000 tons to 45,000-50,000 tons per month in the second quarter of this year.
The company will aim the construction projects in the Gulf Cooperation Council (GCC), and Middle East and North Africa.
UAE rebar capacity is 3.7 million tons per year and many mills are running at low capacity rates or have stopped completely.
However, there’s a sign to show a future recovery in steel demand from the construction sector recently.
Juma Al Mansouri, the company’s assistant vice president of sales said that Saudi Arabia, the GCC’s main project market with a 38% share of value has US$$385 billion of mega projects planned.
Also, Qatar, the fastest-growing regional economy has announced US$150 billion of projects. Iraq, a promising future market for construction steel demand has experienced an increase in project cancellations since the second half of 2012 due to political instability.
