Balli Steel Reports 100 per cent PA Rise in Global Steel Prices
Released
on:August 21, 2008, 5:56 am
Press
Release Author: Balli
Group
Industry:
International
Trade
Press
Release Summary: Balli Steel has announced that the construction
boom is driving steel prices in emerging markets, according to
the latest Quarterly Market Report 2008 on global steel prices
and trends
Press
Release Body: Balli Steel has reported that in
the last 12 months, global steel prices have increased by 100%
and now range from around $1,000 to $1,500 per tonne. The company
highlights that global annualised steel production has reached
a record 1.4 billion tonnes, up from 800 million tonnes in 2000.
Balli
Steel indicated that global steel
trading demand is for two types of steel products: construction
steel - beams, bars and mesh, used for infrastructure projects,
offices, housing and leisure facilities - and industrial steel
- used for manufacturing items such as automobiles, ships and
pipes. The company revealed that the construction activity in
emerging markets including China, the Middle East and Brazil,
has been driving the price of steel over the past few years.
Balli
Steel calculates that there will be continued buoyancy
and capacity constraints for steel in the oil, shipbuilding and
gas industries. They also highlighted the tremendous growth opportunities
in emerging markets which now account for over 75% of global steel
consumption.
China
now dominates the world’s steel market, accounting for 45%
of global steel consumption, up from just 30% 10 years ago. China
has also emerged as a leading steel producer, with steel production
expected to reach 550 million tonnes in 2008, up from approximately
200 million in 2000.
Balli
Steel stressed that the Middle East is a strong market
for the steel industry, with the market growing at a rate of 3.2%
per annum, one of the fastest in the world.
In
2001 construction steel in the Middle East was priced at just
$200 per tonne, but in 2008 it has peaked at $1,550 per tonne.
The majority of the demand is for construction steel, required
to help build the property mega projects such as The Palm Jumeriah,
the Burj Dubai and Dubai Marina.
In
the first half of 2008, Balli Steel supplied
almost 1 million tonnes of steel to the Middle East. Since developers
have now priced steel and other construction commodity prices
into their forward development plans, the company does not anticipate
further cost pressures, enabling Balli to anticipate a continuing
healthy demand for steel until 2012 due the construction boom
in the region.
Balli
Steel believes that whilst the Dubai property market
has grown significantly and emerged well ahead of other property
markets in the region, the next 5 years will see the rapid growth
of new property markets in Saudi Arabia, Qatar and Abu Dhabi.
The
company highlighted that Saudi Arabia has not commenced construction
on any of its major masterplan projects, which will add some 5
million tonnes per annum to the country’s steel requirement.
India
is predicted to be one of the world’s fastest growing economies
and producers of steel over the next 7 years, currently accounting
for 50 million tonnes of steel, and Balli Steel calculates
that this will double by 2015, driven by a huge demand for industrial
steel.
Europe,
which accounts for some 17% of global steel consumption, has been
growing at a steady rate of 2% per annum. The steel markets in
the southern European states are driven by a demand for construction
steel, whilst the northern European countries are dominated by
a demand for industrial steel products.
Notes for Editors:
Balli Group,
is a large private, multi-national corporation, headquartered
in London, but with offices in Dubai and other key business hubs
around the world.
Balli
was established in 1982 and operates a number of affiliated companies
specialising in commodity trading, industrial, real estate and
private equity with operations in over 20 countries. Together
with its affiliated companies, Balli employs over 2,000 people
worldwide.
Balli
Steel is the company’s principal operating subsidiary,
and is one of the largest independent steel
traders in the world. Balli Steel provides
raw materials and steel to a number of market segments.
Web
Site: http://www.balli.co.uk
Contact
Details: Alex Lawrie
PR Contact
Balli c/o
7 Hertford Street
Mayfair
London
W1J 7RH
020 7886 0304
www.balli.co.uk
2009
