Most experts and analysts among exhibitors at the recently concluded SteelFab show in Sharjah believe demand for steel will pick up 15 per cent in the Middle East this year on the back of rising requirements from the UAE, Saudi Arabia and Qatar.

With the regional economies, especially oil producers, set to consolidate their growth in 2012, exhibitors who took part in the survey conducted by Expo Centre Sharjah, SteelFab organisers, believe that demand for steel will arise from the expected buoyancy of the infrastructure, oil and gas and construction sectors.

“Steel is the basic raw material used in various sectors from infrastructure to heavy industries and from construction to white goods. The demand and price movement of steel can predict the condition of the overall economy. The positive outlook projected by the exhibitors at SteelFab augurs well for the greater economic growth of the region,” said Saif Mohammed Al Midfa, director general of Expo Centre Sharjah. SteelFab 2012 was held at Expo Centre Sharjah and attracted about 7,000 trade visitors, registering nearly 22 per cent growth over its past show.

Steel demand in the UAE has soared in the past few years in the backdrop of continuing infrastructure projects, cheap and reliable gas and energy supply and growing investments in the construction industry and other core sectors. The apparent consumption of finished steel products is expected to reach more than 8 million tonnes by 2014-end, according to a market research.

“The market is gaining more confidence. Overall, we can see great potential. Customers who have been quiet for some time are now placing their requirements,” said Shakeel Siddique, business development manager, Dawood Sons Group, Sharjah, an exhibitor who took part in the Expo Centre survey.

The steel sector is also looking at Saudi Arabia, the largest Arab economy, and Qatar to generate the bulk of the demand, the respondents said.

Saudi Arabia has become one of the favourite destinations for steel majors due to its booming construction sector, with the consumption of iron and steel in the kingdom reaching around 16 million tonnes in 2010. The country is expected to sustain its leadership in construction activities in the entire Middle Eastern region with an estimated $400 billion investment on large development projects during the next five years.

The steel industry will also be eagerly anticipating the $97 billion GCC road and railway projects, including the $30 billion GCC rail network.

Qatar is not far behind, with about $140 billion being allocated for developing infrastructure ahead of the 2022 Fifa World Cup which promises to generate massive demand for steel products.

Even though a majority of the exhibitors felt that the bulk of the contracts for the Qatar projects are expected only by the next year, they are looking forward to seeing business trickling in by this year itself.

More investments
These positive factors are likely to attract more investors to the sector, they felt. “We are expecting more capital investment in the steel industry,” said Kamlesh T Gangwani, managing director, Kaltenbach, UAE.

“The market is picking up and is ready to invest. We expect our business to grow 25 per cent,” said Rizwan Shahad, managing director, GFM-Voortman.

The four-day show featured 216 direct exhibitors and more than 600 brands from 26 countries. Exhibitors came from Australia, Austria, Belgium, China, Egypt, Finland, France, Germany, Greece, India, Iran, Italy, Korea (South), Kuwait, Lebanon, Malaysia, Netherlands, Singapore, Spain, Sweden, Switzerland, Taiwan, Turkey, the UK, the US and the UAE. Showcased were a complete range of machinery and equipment in metal forming, welding and cutting, surface preparation and finishing, grinding and cutting, machining and other allied engineering disciplines such as material handling at over 16,000 square metres of exhibition space.

“SteelFab has successfully introduced new machinery and equipment to the Middle East, contributing to the fast growth and changing market dynamics. This year too, in a true show of the buoyancy of the regional steel fabrication industry and the credibility of its platform, SteelFab has proved to be an ideal platform for new launches,” said Al Midfa.

Rockwood International, a regular exhibitor at SteelFab, announced new tie-ups and innovative products on the first day itself. “We have several exciting agency tie-ups that will offer our products to customers,” said Ken Safaya, CEO of Rockwood International.

“There has been a lot of interest in our new product APC Robot, the world’s lightest, portable, automatic pipe-cutting robot. We have also seen the successful launch of a revolutionary, lightweight, portable marking machine by Markator, Germany,” he added.

Equipment showcased by UAE trading firm LaRosa Hardware & Equipment

Revolutionary technology
Another key launch was a revolutionary new technology on punch presses by Trumpf Werkzeugmaschinen GMBh + Co KG from Germany. “Our motto this year is to turn waste into money by using our new skeleton-free process and integrating new software functionalities, which will reduce production time and save on part costs,” said Eberhard Hoelzgen. “This is our sixth year at SteelFab and we always strive to introduce new technologies to the region,” he added.

In skeleton-free processing, the machine, the software and intelligent tooling are all perfectly matched and when the machining is complete, the original metal sheet would have simply vanished. That boosts not only process reliability but material efficiency as well. On average, this achieves a 10 per cent improvement – but in some cases even as much as 50 per cent.

Coherent Technologies, a manufacturer of laser systems from the US, was a debutant at the Dawood Sons Group stand and demonstrated the Metabeam 1000. “The recently-introduced Metabeam 1000 has the capacity to cut stainless steel up to 3 mm with 1 KW as well as other materials such as mild steel, aluminium, acrylic, wood and rubber,” said Shakeel Siddique of Dawood Sons Group.

Metabeam 1000 offers cost-effective processing of a wide range of metals and other materials for job shops, metal service centres and sheet metal fabrication shops. Its ease of use and automation capabilities will also make it attractive for in-house sheet metal cutting for manufacturers in a broad range of industries including white goods (appliances), automobiles, aerospace and contract manufacturing.

Kahrl & Wiemann, a regular participant at SteelFab, was pleased with the response. “We launched Roccia SRL plate bending machines. We represent quality machines from Europe, and Roccia SRL is our offering in plate-bending solutions to the Middle East markets,” said Hans Wiemann, president and CEO of Kahrl & Wiemann.

Tekla, a leader in digital information models, presented its building information modelling (BIM) solutions for the construction industry and, in particular, steel fabrication expertise.

“Working with Tekla Structures BIM software is the most advanced and integrated way to manage detailing, fabrication and erection of all steel structures such as commercial buildings, industrial plants, sports stadiums, offshore platforms and jackets including miscellaneous steel work,” commented Tahir Sharif, managing director, Tekla ME.

The show was opened by Sheikh Salim Abdul Rahman Al Qassimi, director of the Ruler’s office, Sharjah.