Retaining its edge

The region ranks among the top consumers of steel globally.

Looking at UAE's urban landscape is like watching modern art at play. Elements such as concrete, glass and steel bring alive the creative blueprints of architects and designers, engineers and developers, who use space, matter and their imaginations to create buildings that reflect the pulse and personality of this young and vibrant nation.

While we can point out the magnificence of these structures, it's also important to pay heed to what makes these buildings safe, as well as stand tall and strong in the face of harsh climatic conditions and ravages of time.

Steel is the mainstay of the modern construction industry because of its strength, durability and versatility. Attributes such as these are mandatory in urban property and infrastructure developments, both in the UAE and around the world and, therefore, construction is the steel industry's largest market.

Growing demand

According to the International Iron and Steel Institute (IISI), it is estimated that the worldwide consumption of finished steel in construction was approximately 275 billion tonnes in 2002, approximately 44kg per capita.

According to the institute's forecasts, apparent steel demand is estimated to grow between 1,040 to 1,053 million tonnes in 2006 from a total of 972 million tonnes in 2004. These figures account for about four to five per cent over a two-year period.

According to the IISI, world crude steel production for the first 10 months of 2005 was 915.4 million metric tonnes with the Chinese leading production figures. Japan, the US, Russia, South Korea and Germany also rank among the leading companies in crude steel production.

While countries such as China and the US are major consumers of steel, the Middle East and North Africa are fast becoming key global consumers and producers of flat and long steel products. IISI figures show that the apparent consumption of finished steel products in the Middle East region in 2004 was approximately 15.4 million tonnes.

The reasons for such a high demand in this region can be linked to strong oil revenues, a growing manufacturing base, a strong economic performance and rapid growth in the construction sector.

According to Asim Siddiqui, Managing Director, Age Intrade LLC, wholesale suppliers of structural steel, "The steel industry in the Middle East is one of the fastest growing in the world in terms of production and consumption of steel, thanks largely to a high level of local demand, considering the massive investment by Gulf States in infrastructure projects and real estate construction.

Current trend

"Steel production output here equates to over 15 million tonnes per annum, reflecting about 1.33 per cent of total worldwide output. The current trend in the steel industry has been the expansion of existing capacities to cater to the continuing increase in demand."

Siddharth Balachandran, Managing Director, Bumga Group, a leading conglomerate involved in trading of construction material, says that the region would definitely rate among the top global consumers of steel. The Middle East market is witnessing an unprecedented economic boom, which has resulted in huge infrastructure expenditure.

"Obviously the vast number of projects that have been announced by the government has helped create a huge demand which, in turn, is helping the market as a whole to consolidate its resources in a faster and more efficient manner to fulfil market dynamics," he says.

Cost-effective approach

Siddiqui says, "Steel has always been considered a more cost-effective approach compared to concrete in the construction industry. Steel can sustain greater temperatures and is perfect for a region like the Middle East, which is prone to severe heat. It is highly durable and environmentally friendly. Steel is also easily available in this market and there are a number of traders in this market who maintain inventories of steel in all grades, sizes and quantities."

Balachandran says that steel wins as a building material because of its strength and the ease with which value additions can be carried out to enhance the material. Certain characteristics can be added to steel with the inclusion of other substances, or through certain processes. This gives the contractor more flexibility, and it also improves overall efficiency of the material.

While plain, round steel bars were used years back, the trend has shifted to using deformed bars, which offer more bonding strength, and structural steel.

"Deformed bars (reinforcement steel) and structural steel such as beams, columns and flat bars, among other elements, are commonly used in the construction industry," says Balachandran.

Deformed bars are used for sub-structure and super structure, while deformed bars along with structural steel are used for piling work.

Structural steel

Structural steel is also of primary importance as a building material in this region. "This variety of steel is mainly used in the construction of bridges, tunnels, skyscrapers, shipyards, oil rigs and warehouses, which are being constructed in a big way in the UAE and Gulf region," says Siddiqui.

Structural steel elements such as beams and columns are of special significance because of the role they play in the foundation of construction projects such as high-rise buildings and infrastructure including bridges and rigs. The huge load created by these structures can be withstood only with the support of structural steel.