Turkey GCC Long Steel Products Market

Increasing Urbanization and Industrialization is Driving the Demand for Long Steel Products

Urbanization and industrialization are significantly driving the economic growth in the region, further creating substantial demand for construction materials and this is supporting the market of long steel products. Long steel products such as bars, wire rods, rails, and structural beams are essential in infrastructure development and industrial expansion. As urban areas expand and the focus on industrialization increases, the need for reliable, durable, and versatile materials for construction increases.

With an increasing proportion of a population moving to urban areas, the need for housing, commercial spaces, transportation networks, and other urban infrastructure is growing, and this is ultimately driving the demand for long steel products. Long steel products, such as reinforcement bars, play a vital role in the construction of skyscrapers, residential complexes, and public buildings as it offers the necessary structural integrity to concrete. Also, there is an increasing emphasis on expanding the public transportation networks, including railways and highways, which require extensive use of steel products such as rails and beams.

The rapidly increasing population in the region is leading to a rising need for residential housing and commercial office space. Long steel products, particularly steel beams and columns are used widely in the construction of high-rise apartments, office towers, and shopping malls. Furthermore, commercial real estate is expanding substantially to accommodate businesses, and this growth is creating a surge in demand for office buildings, industrial parks, and logistics centers. The high versatility and ability of steel to be molded into various shapes and structures make it the preferred material for architects and engineers.

Advances in steel production techniques such as electric arc furnaces have increased the availability of high-quality long steel products. These innovations have helped in making steel production more efficient and environmentally friendly by reducing waste. Additionally, advanced rolling and forming techniques have enabled manufacturers to develop long steel products with higher strength-to-weight ratios, thereby improving their performance in structural applications. This has further expanded the application of long steel in complex and high-stress projects, such as bridges, stadiums and industrial plants.

As urban areas grow and industrial activities expand, there is a rising interest in the development of smart cities that leverage technology for improving efficiency, sustainability and quality of life. This factor is positively influencing the market of long steel products that are crucial in the construction of the infrastructure required for smart cities as its durability and recyclability align with the goals of creating smart cities that prioritize sustainable development. Moreover, the use of steel in modular construction systems enables quicker and more efficient building processes, which is essential in fast-growing urban environments.

The long steel products play a very pivotal role in the construction and assembly of various automotive components and thus witnesses huge demand from this industry. High reliance of automotive industry on long steel products is considerably driving demand for steel, as the automotive industry continues to grow, innovate, and expand into new technologies. One of the key applications of long steel products in the automotive sector is in the construction of vehicle frames and chassis.

The chassis serves as the foundation of a vehicle by supporting the engine, suspension, transmission and bodywork, and thus it should be able to withstand high mechanical stress while providing structural integrity. Long steel products, particularly steel bars and beams are the essential materials used to fabricate these components, where the high tensile strength and durability of steel ensure that vehicle frames can handle the weight of the vehicle along with offering the resistance to deformation in case of impacts.

Furthermore, long steel products are used in the manufacturing of suspension systems, which are vital for the stability, comfort, and performance of vehicle. Steel rods and bars are generally used in the production of coil springs, leaf springs, and stabilizer bars that absorb shock and maintain tire contact with the road. Long steel products are also used in the automotive engine, where they are utilized in the production of key components such as camshafts, crankshafts and connecting rods.

These parts are subject to intense mechanical stresses due to the internal combustion process, thus requires materials that can withstand high temperatures and dynamic loads without deforming or breaking owing to which the use of steel in making these components in rising. Moreover, the rising adoption of electric vehicles is further contributing substantially to accelerating the demand for long steel products. Electric vehicles rely on steel components for their chassis, suspension, and electric motor assemblies. Also, the use of high-strength steel in electric vehicles helps manufacturers reduce the additional weight of batteries by providing a lightweight yet strong framework.

Long steel products are also used to produce battery housings, which are needed to be durable and resistant to corrosion and impacts. With the growing demand for electric vehicles, the need for long steel products in this sector will continue to expand, driven by both technological advancements and the rising focus on using more sustainable transportation.

There has been increasing developments in GCC region for expanding the market of automobiles in the region. For instance, in October 2023, the Public Investment Fund (PIF) of Saudi Arabia and Hyundai Motor Company (Hyundai) of Saudi Korea have signed joint venture agreement for establishing a highly automated vehicle manufacturing plant in Saudi Arabia with an investment of USD 500 million. Further, March 2024, Ceer announced the awarding of a SAR 5 billion (USD 1.3 billion) contract for the construction of the Ceer Electric Vehicle Manufacturing Complex in King Abdullah Economic City.

Ceer is the first Saudi automotive brand to produce electric vehicles in Saudi Arabia, and will design, manufacture and sell a range of vehicles for consumers in Saudi Arabia and the MENA region, including sedans and sports utility vehicles. Also, in October 2024, Smart, the premium intelligent all-electric auto brand and AW Rostamani Group partner to launch premium electric vehicles in the UAE. Such strategic investments and developments are playing a crucial role in boosting the automobile sector in GCC region, further positively impacting the market of long steel products.

Increasing usage of long steel products in energy sector

For instance, long steel products such as steel pipes and tubular goods are used in the construction of drilling rigs, derricks, and platforms. The strength, durability, and corrosion resistance of steel make it a suitable material for withstanding the harsh environments in offshore drilling, deep-sea extraction, and other challenging conditions. Also, in the transportation of oil, gas, and other fuels, an extensive network of pipelines is used. Long steel pipes are essential for these pipelines, where it offers the necessary durability and resistance to internal pressures and external forces.

Steel’s ability to be welded and formed into seamless or welded pipes makes it ideal for applications in the energy sector.

Furthermore, long steel products are very important in the construction of power plants. In thermal power generation, steel is used in a variety of applications, including turbine housings, boiler construction and heat exchangers. Steel is also used in the fabrication of structural components including support beams and frameworks for the plant. Long steel products are used because it offers the necessary strength and heat resistance necessary for high-temperature operations.

Moreover, in the construction of dams and water turbines for hydroelectric plants, significant amounts of steel in the form of reinforcing bars and structural beams are used for making dam's structural components and water intake systems.

Rapidly growing manufacturing industry

Long steel products are valued for their high strength, versatility and ability to withstand high loads and stresses due to which it is used significantly in manufacturing sector, and the increasing demand for advanced machinery, construction equipment, and other industrial goods is driving the demand for long steel products in the manufacturing sector. Long steel products are very important components used in the manufacturing of construction and heavy machinery such as excavators, bulldozers, cranes, and loaders, which require high-strength steel components for durability, safety and reliability.

Long steel beams and columns are useful in the construction of heavy machinery's structural frameworks, where the use of steel helps the frameworks to withstand the high pressures and loads associated with lifting, digging and moving materials. Industrial equipment such as conveyor systems, pumps, compressors, and hydraulic presses, are used in several industries including food processing, pharmaceuticals, textiles, and electronics, to facilitate large-scale production processes and the significant application of long steel products in manufacturing of these equipment makes it an important material used in this sector. 

Long steel beams and bars are used substantially in the manufacturing of the frames and supports for industrial equipment. The high durability and load-bearing capacity of steel ensure that these machines can operate efficiently under heavy loads and continuous use. Further, steel rods find applications in the production of shafts, gears, and other rotating parts that are essential for the movement and operation of industrial machinery as the wear resistance and toughness of steel make it suitable for making components that undergo constant rotation and mechanical stress.

Moreover, long steel bars and rods finds application in making presses and forming machines, which are used to shape and mold materials in manufacturing processes. Thus, as the industrial production expands to meet growing consumer demand for goods, the need for long steel products for making industrial equipment continues to increase.

In November 2024, Kayanat, a provider of transformative solutions for Saudi Arabia’s energy and industrial sectors, announced a strategic joint venture with PIONEERS, a company specializing in engineering, logistics, automation, and digital solutions in the Kingdom. This joint venture will implement pioneering technologies, including remote-controlled machinery, autonomous vehicles, and advanced pipeline inspection systems, across Saudi Arabia’s heavy industry sector. Moreover, in October 2024, Khalifa Economic Zones Abu Dhabi (KEZAD Group) and Emtelle, a manufacturer of fiber-optic and microduct solutions, have launched Emtelle’s USD 50 million global innovation and manufacturing facility in KEZAD Area A.

The new facility, spanning 48,000 square meters, strengthens Emtelle’s expansion within the Middle East and North Africa (MENA) region, reinforcing the company’s commitment to delivering top-tier telecom infrastructure solutions to the global market. Thus, the increasing focus of various companies on reinforcing their manufacturing capabilities will drive the demand for long steel products in GCC region.

The economic growth in Turkey and the GCC region appears to be a significant driver for the Global Turkey and GCC Long Steel Products Market Industry. With increasing GDP rates and a focus on diversifying economies, particularly in the GCC, there is a heightened demand for construction materials, including long steel products. The economic diversification efforts in these regions are likely to stimulate various sectors, thereby increasing the consumption of long steel products. This economic momentum is expected to sustain the market's growth, with a projected CAGR of 8.59% from 2025 to 2035, indicating a favorable outlook for the industry.

Rapid urbanization in Turkey and the GCC countries is likely to propel the Global Turkey and GCC Long Steel Products Market Industry. As populations migrate to urban areas, the demand for housing and commercial buildings increases, necessitating the use of long steel products in construction. The urbanization rate in Turkey is projected to rise, leading to a surge in construction activities. This urban expansion is expected to create a substantial market for long steel products, contributing to the overall market growth, which is forecasted to reach 66.5 USD Billion by 2035, reflecting the long-term potential of this sector.

The regulatory frameworks governing the steel industry in Turkey and the GCC region are shaping the Global Turkey and GCC Long Steel Products Market Industry. Governments are implementing policies aimed at promoting local production and reducing dependency on imports. These regulations may include tariffs, quality standards, and incentives for domestic manufacturers. Such measures are likely to enhance the competitiveness of local steel producers, thereby increasing the availability of long steel products in the market. As these regulatory changes take effect, they could significantly impact market dynamics and foster a more robust domestic steel industry.

The ongoing infrastructure development across Turkey and the GCC region serves as a primary driver for the Global Turkey and GCC Long Steel Products Market Industry. Governments are investing heavily in construction projects, including roads, bridges, and urban developments, which require substantial quantities of long steel products. For instance, Turkey's ambitious infrastructure plans are projected to boost the demand for long steel products significantly. This trend is expected to contribute to the market's valuation, which is anticipated to reach 26.9 USD Billion in 2024, indicating a robust growth trajectory fueled by infrastructure initiatives.

Technological advancements in steel production and processing are influencing the Global Turkey and GCC Long Steel Products Market Industry. Innovations in manufacturing techniques, such as automation and improved quality control, are enhancing the efficiency and quality of long steel products. These advancements not only reduce production costs but also meet the evolving demands of the construction sector. As manufacturers adopt these technologies, they are likely to gain a competitive edge, thereby driving market growth. The integration of advanced technologies may also lead to increased sustainability in production processes, aligning with global trends towards environmentally friendly practices.

Turkey, with its robust steel manufacturing infrastructure, serves as a significant exporter of long steel products, benefiting from its strategic geographical position between Europe and the Middle East. While the GCC region, driven by massive infrastructure projects and urbanization efforts, has seen steady demand for long steel products, often supplemented by imports due to the limited domestic steel production in some member countries.

The presence of large domestic producers, regional manufacturers, and international players aiming to capture market share. The market dynamics are further impacted by factors such as raw material availability, pricing strategies, technological advancements, and the push for sustainable steel production. This competitive analysis delves into the key players, their market positioning, production capacities, and the strategies employed to maintain a competitive edge in the evolving Turkey and GCC long steel products market.

Key players include EMSTEEL, SULB, Jindal Shadeed Iron and Steel (JSIS), Qatar Steel, Al Rajhi Steel Company, Erdemir, Riyadh Steel Company, Al-Ittefaq Steel Products Company (ISPC), Çolakoglu Metalurji A.S., Tosyali Holding, and Hadeed.

Emsteel: EMSTEEL is a leading integrated steel manufacturer in the Middle East region, based in the UAE capital, Abu Dhabi.  The company is a public joint stock company and the UAE’s largest steel and building materials manufacturer. The company is involved in producing steel and construction materials like steel and precast concrete products. Company manufacturers steel products that are shipped and used across the world and delivered into major global markets, for the construction, engineering and energy sectors.

Additionally, the Group produces Cement, Concrete Products (Bricks), Centrifugally Cast (CC) Glass Fiber Reinforced Polyester (GRP) pipes, GRP Structural Chambers and Manholes, GRP Holding tanks, GRP ladders, GRP liner, Enclosures, PVC pipes, etc., creating a diverse construction product portfolio for the manufacturing and construction sectors. EMSTEEL possesses leverages cutting-edge rolling mill technology, and supplies the domestic and international markets with high quality finished products including wire rods, rebars, heavy sections and sheet piles. The company's broad product portfolio, manufactured in Abu Dhabi, positions it as a global player, supplying finished goods to over fifty countries.

These products are utilized in critical applications ranging from maritime engineering and high-rise construction to large-scale infrastructure projects, including in the United States. EMSTEEL is a leading producer of high-quality rebar with a production capacity of 2 million tonnes annuall. It is also prominent wire rod producer in the GCC with a production capacity of 550,000 tonnes annually and largest producer of heavy and jumbo sections in the GCC with a production capacity of 1 million tons annually. Company is equipped with Electric Arc Furnace and Produce most of it steel from DRI and scrap material

Sulb: SULB is a major steel producer using the Direct Reduced Iron (DRI) process. Born of a joint venture between Foulath, a major Arab investment company and Yamato Kogyo of Japan. It is a sister company to Bahrain Steel, which operates one of the world’s largest mine-to-metal iron ore pelletizing plants on the site immediately adjacent to SULB in Bahrain. Bahrain headquartered Foulath is a US$ 3.5 billion holding company and investment vehicle for metal industries across the Middle East region.

It is owned by a range of reputable partners in the GCC: Kuwait Foundry, Gulf Investment Corporation, Al-Kharafi Group and Qatar Steel. Foulath currently owns a 51% share of SULB. It also owns 100% of the merchant iron ore pelletizer Bahrain Steel and United Stainless-Steel Company. Foulath supports the twin SULB plants in meeting regional aspirations for a domestic steel industry. The Company produce Vast range of products and steel grades to cater diverse range of customers.

Company uses DRI to manufacture all it steel products as it gets continue supply of DRI from it Bahrain plant which has a DRI facility. Electric Arc Furnace technology is used for Steel Melting

Turkey & GCC Long Steel Products Market Industry Developments

September 2024 It was reported that Saudi Arabia’s Al Ittefaq, a major integrated mill and long steel producer, plans to proceed with an initial public offering (IPO) on the Saudi Stock Exchange, Tadawul, in 2024. A subsidiary of Al Tuwairqi Group, the company is preparing to finalize a financial consultancy agreement for the public offering. According to a source close to the company, the IPO is expected to take place in the first half of 2024, once all regulatory requirements have been completed.

March 2024: It was reported that Riyadh Steel Company's profits had surged to 11.1 million riyals by the end of 2023. This marks a significant increase compared to the 5.1 million riyals the company earned during the same period in 2022. Riyadh Steel, known for its operations in the steel manufacturing and scrap sales industry, saw its profitability more than double over the year, reflecting strong performance and growth in its sector.