Qatar Steel sees 30% fall in Gulf demand

SHARP FALL: Qatar Steel expects to see a fall of at least 30 percent in demand for reinforcement steel next year. (Getty Images)

Demand for reinforcement steel used in construction, rebar, in the Gulf Arab region is expected to fall by at least 30 percent in 2009, Qatar Steel said on Monday.

"It will be a very challenging year," said Ali Hassan al-Muraikhi, manager at the commercial division at Qatar Steel, a unit of Industries Qatar.

"The demand will start declining and the decline will be in the range 30 percent for 2009 considering the (global) financial problems and falling oil prices," he told Metal Bulletin's steel and iron ore conference in Dubai.

Infrastructure and construction demand had pushed rebar prices to above $1,500 per tonne in July. Falling demand since then have pushed them to around $500 per tonne currently. (Reuters)

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