October Performance
In October, the six countries in the Middle East and North Africa (MENA) region that report to worldsteel (excluding Qatar) recorded a month-on-month increase in direct reduced iron (DRI) production. The total output reached 6.7 million tonnes, marking a 31.4% rise compared to September and a 31.3% year-on-year increase. Iran stood out as a key contributor, producing 4.69 million tonnes in October, up 44.2% year-on-year and 43.2% month-on-month.
Performance by Key Countries
- Iran: Cumulative production from January to October reached 30.78 million tonnes, reflecting a 12.1% year-on-year increase. Iran remains the driving force behind the region’s growth.
- Saudi Arabia: As the world’s fourth-largest DRI producer, it recorded 618,215 tonnes in October, up 22.2% year-on-year. However, total output for the first ten months slightly declined by 0.2%.
- Egypt: October production rose 26.5% month-on-month to 701,761 tonnes but saw a 5% decline in cumulative output compared to last year.
- Qatar: Despite a 5.9% month-on-month drop in October, production rose 40.9% year-on-year, with a 10-month growth of 8.3%.
- UAE and Libya: Mixed results were observed. The UAE’s output increased 14.2% month-on-month but declined slightly year-on-year, while Libya grew 1.9% month-on-month but dropped significantly by 13.5% year-on-year.
Market Context and Challenges
MENA countries contributed 52.2% of reported global DRI production in October. However, the region faces challenges in global markets due to low scrap prices, particularly in the second half of the year. Qatar Steel reported that buyer target prices were $20-30/tonne lower than seller expectations, limiting transaction volumes in overseas markets.
Conclusion
The MENA region achieved notable growth in DRI production, driven largely by Iran’s robust performance. However, year-on-year declines in some countries highlight ongoing market challenges, including price pressures and reduced international trade. The future of DRI production in MENA will depend on shifts in global demand and strategic adjustments within the region’s steel industry.
