GCC countries are still facing the problem of excess steel production capacity

The Middle East Economic Digest reported on December 5 that at a meeting of the Middle East steel industry held recently, some steel industry giants in the region said that the steel market of the GCC countries still faces serious overcapacity problems. Currently, the steel market in the region is 23 million tons, but its capacity is close to 56 million tons, with an excess of nearly 60%.

However, some participating enterprises also pointed out that the market demand for flat steel is increasing. In the future, flat steel will occupy a larger share in the steel production in the region.

Some business representatives think that economic growth is the main engine for boosting the development of the steel industry. At present, the steel consumption in the region has bottomed out and the situation should turn around next year. Although some major infrastructure projects will be started one after another, their impact on steel demand is not expected to be reflected until the second half of 2019.