Crude steel production in the four Middle Eastern countries covered by the World Steel Association’s monthly report declined -1.4% on-year in July to 2.23 million tonnes, Kallanish learns from worldsteel.

This was despite further production growth in the region’s largest producer, Iran, by 6% to 1.35mt. Iranian steelmakers have since 2015 hiked exports, especially of semi-finished products, to compensate for weak construction industry demand at home. January-July output thus rose 5% to 10.1mt.

United Arab Emirates saw output drop for the fourth consecutive month in July; however, the decline slowed to only -1%, resulting in 280,000t of crude steel. Main steelmaker Emirates Steel is reported to have overcome “…delivery issues” and is now supplying the market quicker than in previous weeks, according to Dubai-based traders. Seven-month UAE output fell -0.2% to 1.76mt, the first time in 2016 that year-to-date output has declined.

Saudi’s largest steelmaker, Sabic, meanwhile, posted a -15% on-year output decline in July to 400,000t, taking seven-month output down -23% to 2.76mt. Saudi steel demand has been curtailed by reduced government spending on lower oil prices, with the country’s gdp growth forecast at 1.5% in 2016, the lowest in decades.

Crude steel output in Qatar fell -15% on-year in July to 200,000t, taking seven-month output down -10.5% to 1.38mt.

Middle Eastern crude steel production in January-July thus declined -3% to 16mt.

Egyptian crude steel output, meanwhile, fell -20% to 340,000t, taking seven-month output down -27% to 2.56mt. The country continues to suffer from gas shortages.