Middle East steel market subdued in 2009

The high stockpiles, particularly in the UAE, and slackening demand, steel prices are expected to remain subdued in 2009 in the range of $500 a tonne, according to "Middle East Steel 2009" report conducted by Research and Markets. The report says that major, government-backed players in the regional steel industry appear to be well insulated from the effects of the global slowdown. However, the smaller, private sector firms, especially in the downstream arena, look vulnerable to a prolonged economic downturn, raising the possibility that there may be some much-needed consolidation in the industry. Middle East Steel 2009 reports that the global downturn and the lack of available project finance have put the brakes on regional expansion projects, particularly in the downstream sector. In the upstream sector, both Bahrain-based holding company Foulath and Brazil''s Vale (formerly CVRD), which are planning major investments across the region, said that their projects will proceed despite the difficult trading conditions. The report also says that if implemented, the projects will take regional palletising capacity up to 68 million tonnes per year (t/y) by 2013. The slowdown will have a major impact on Iran''s much-publicised plans to quadruple steel production over the next five years, which were already in trouble due to a lack of finance and bureaucracy prior to the onset of the credit crunch.Nike Air Max Plus TN