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UAE’s DRI Market Outlook Report

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Direct-reduced iron (DRI) is produced in a solid process where iron ore pellets or fines are converted into pure iron by being reduced using reducing agents. DRI products are divided into three categories based on shape and appearance: sponge iron, briquettes, and fine; fine is usually used as cold-briquetted iron. DRI can also be categorized based on production process: direct-reduced using coal, and direct-reduced using natural gas. A major part of the Middle East as one of the most important sources of natural gas has been dominated by DRI products using natural gas.

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Product Description

With a per-capita GDP of $61,000 in 2019, the UAE was the second largest economy in the region that year, behind Qatar. Despite being the most diverse economy in the Gulf Cooperation Council (GCC), the country is still reliant on oil. Oil and petrochemicals account for a major portion (more than half) of the country’s exports. Gold, diamond, and pearl (as jewelry) account for a quarter of exports from the country. With a history of over 20 years in the UAE, the iron and steel industry accounts for 2% of the country’s exports. Downstream iron and steel products constitute the major share of exports in the industry.

Market drivers of the UAE’s DRI

Over the recent years, about 83% of the UAE’s total crude steel output was produced using sponge iron. Thus, crude steel output has played a major role in the demand for sponge iron and DRI. Also, most steelmakers in the region use DRI as raw material to produce steel. Having access to a large crude steel market in all Persian Gulf countries is a major driver of development and growth in the UAE’s DRI output.

Ferrous scrap is the only substitute for sponge iron in the production of crude steel using electric furnaces; despite higher prices compared to sponge iron, using scrap can reduce production costs due to its higher purity and content of alloy elements. Scrap can be considered a threat to the UAE’s sponge iron market that can restrict developments.

The UAE reported its first case of Covid-19 in February 2020. Not much longer, in March, social distancing and lockdowns were implemented. As a result, the country’s mobility index dropped to around 60%. As the pandemic continued to spread, lockdowns were extended into mid-April, but activities were gradually resumed under certain protocols. The country is now past the first wave of Covid-19, but many are still forecasting worse to come in the coming months. Thus, lockdowns are expected to continue, albeit temporarily, disrupting industrial performance and eventually lead to a decline in demand for DRI.

Overview of the UAE’s DRI market

Since the UAE’s largest steelmaker accounts for a large portion of the country’s sponge iron production, it can be concluded that most of the domestic sponge iron output is used within the country. As a result, there are no significant trades. Exports are mostly accounted for by other companies, which generally have small capacities. Thus, exports by smaller companies are expected to continue, but the country’s largest DRI producer will sell most of its output in the domestic market. On this basis, the country is expected to remain a net exporter, but volumes are not likely increase significantly by 2025.

Breakdown of the UAE’s DRI market

The UAE’s DRI market is divided into sponge iron and briquettes. Since briquettes are less porous than sponge iron, they are also easier to transport. Due to this, hot-briquetted iron takes a sizeable share in total DRI trade. However, the country’s output and consumption mostly consist of sponge iron.

Key players in the UAE’s DRI market

  • Emirates Steel Industries P.J.S.C.
  • Al Nasser Industrial Enterprises LLC

Additional Information

Industry

DRI and HBI
Region

United Arab Emirates
Report Type

Industry Report

Specifications

Report Attribute Details
The base year for estimation 2019
Historical data 2009-2018
Forecast period 2020-2025
Quantitative units Value in USD and Volume in Tonne
Report coverage Market Overview, Dynamics, Market Outlook, Risks to Forecast, Consumer Market, Industry Overview, Market Landscape, Competitive Landscape, Market Attractiveness, External Macro Environment Analysis
Segments covered Source, Composition, Type, Application
Pricing and purchase options Please explore our purchase options to meet your exact research needs.

Reasons to Buy

  • Recognize the geographical distribution of import demand
  • Identify the current and future key players of the trading market
  • Achieve a better insight on potential target markets
  • Understand the behavior of major suppliers/customers either globally or regionally
  • Identify competitors as a feed for market analysis

Table of Content

  1. Executive summary
  2. Introduction
    • Objective
    • Market under study
    • Product
      • Product specifications
      • Consumption structure
        • Applications
        • Physical properties
      • Subjects discussed
      • Geographical scope under study
      • Study timeframe
      • Study currency
      • Potential audience
  1. Market dynamics
    • Market drivers
    • Restraints
    • Opportunities
    • Challenges
  2. Market overview
    • Market size
    • Industry capacities
      • Existing capacities
        • Capacity distribution
        • Geographical distribution of capacities
      • Future capacities
    • Output
      • Output trends
      • Operating rates
    • Consumption
      • Consumption trend
      • Consumption Share of domestic product
    • Trade
      • Exports
      • Imports
      • Trade balance
      • Market balance
    • Market breakdown by product type
    • Market breakdown by product type
    • Market breakdown by application
    • Inventory
      • Producers inventory
      • Consumers inventory
      • Traders inventory
  1. Market outlook
    • Market factors
      • Raw materials
      • Costs and prices
      • Competition
      • The government
      • Other factors
    • Future scenarios
    • Risks to forecast
  2. Consumer markets
    • End-user markets
      • Building construction
      • Infrastructure construction
      • Transportation manufacturing
      • Industrial equipment manufacturing
      • Durable goods manufacturing
      • Consumable goods manufacturing
    • Direct consumer markets
      • Major Direct consumers
        • Existing capacities
        • Drivers
  1. Export potentials
    • Destinations
      • Trade and insurance costs
      • Import market suppliers
      • Producers potential share
  1. Industry overview
    • Raw materials
      • The supply volume of raw materials
      • Supply channels of raw materials
      • Raw materials procurement costs
    • Cost structure of producers
    • Production cost curve
    • Industry value added
    • Generated new scrap
    • Technology
  2. Market landscape
    • Domestic sales markets
      • Pricing in the domestic market
      • Potential domestic demand
      • Trade agreements for imports
      • Foreign suppliers
    • Foreign sales market
      • Prices
      • Potential markets overview
      • Trade agreements for exports
      • Foreign customers
  1. Competitive landscape
    • Producers
      • Company profile
      • Revenue structure
      • Gross profit margins
      • Capacity, output and sales
    • Consumers
      • Company profile
      • Revenue structure
      • Gross profit margins
      • Capacity, output and sales
  1. Market attractiveness
    • Industry rivalry
    • Threat of new entrants
    • Threat of substitutes
    • Bargaining power of buyers
    • Bargaining power of suppliers
    • Conclusion of Porter analysis
  2. PESTEL analysis
    • Political factors
    • Economic factors
    • Social factors
    • Technology factors
    • Environmental factors
    • Legal factors
  3. SWOT analysis
    • Large-scale companies with favorable conditions
      • Short-term strategies
      • Long-term strategies
    • Large-scale companies with unfavorable conditions
      • Short-term strategies
      • Long-term strategies
    • Small enterprises with favorable conditions
      • Short-term strategies
      • Long-term strategies
    • Small enterprises with unfavorable conditions
      • Short-term strategies
      • Long-term strategies

List of Figures

  1. Output and consumption; 2009-2019
  2. Market share of product applications; 2019
  3. Market surplus; 2019-2025
  4. Production process flowchart
  5. Market size; 2009-2025
  6. Existing capacity; 2009-2019
  7. Capacity distribution; 2019
  8. Geographic distribution of capacities; 2019
  9. Development of future capacity; 2009-2025
  10. Amount of output; 2009-2025
  11. Operating rates of production plants; 2009-2025
  12. Amount of consumption; 2009-2025
  13. Consumption share of domestic product; 2009-2025
  14. Exports of product; 2009-2019
  15. Imports of product; 2009-2019
  16. Historical trade balance; 2009-2019
  17. Future Market balance; 2020-2025
  18. Market output breakdown by alloy type; 2009-2025
  19. Market consumption breakdown by alloy type; 2009-2025
  20. Market balance breakdown by alloy type; 2009-2025
  21. Market output breakdown by product type; 2009-2025
  22. Market consumption breakdown by product type; 2009-2025
  23. Market balance breakdown by product type; 2009-2025
  24. Market consumption breakdown by application; 2009-2025
  25. Inventories of raw materials and products at producers factories; 2009-2019
  26. Consumers’ inventory of product; 2009-2019
  27. Traders’ inventory; 2009-2019
  28. Production forecast, according to raw materials and sales analysis; 2019-2025
  29. Market surplus; 2019-2025
  30. The share of end-user industries in the consumption; 2009 and 2019
  31. Changes in the end-consumption of extrusion products; 2019 vs 2025
  32. Applications in building construction industry; 2019
  33. Applications in infrastructure construction industry; 2019
  34. Applications in transportation manufacturing industry; 2019
  35. Applications in industrial equipment manufacturing industry; 2019
  36. Applications in durable goods manufacturing industry; 2019
  37. Applications in consumable goods manufacturing industry; 2019
  38. Capacity distribution structure of direct consumers; 2019
  39. Existing capacities of direct consumers in each province; 2019
  40. Suppliers of the export potential destination; 2019
  41. Historical exports to the export potential destination and future potential; 2016-2025
  42. Up-stream domestic supply; 2009-2019
  43. Raw materials domestic supply; 2009-2019
  44. Supply channels of producer plants
  45. Spot price of raw material in the market; 2009-2025
  46. Cash cost structure for production the product; 2019
  47. Production cost curve of the plants; 2019
  48. Gross value added of the industry; 2009-2019
  49. Generated new scrap; 2009-2019
  50. Sales channels
  51. Realized price of the product in the market; 2009-2025
  52. Potential demand of each province; 2019
  53. The main foreign suppliers to the market; 2009-2019
  54. FOB price vs domestic market; 2009-2025
  55. Map of global major importers > 20,000t; 2019
  56. Major foreign customers; 2009-2019
  57. Revenue structure of the producers; FY2019
  58. Sales income and gross profit margin of the producers; FY2009-2019
  59. Output and sales of the producers; FY2009-2019
  60. Revenue structure of the consumers; FY2019
  61. Sales income and gross profit margin of the consumers; FY2009-2019
  62. Output and sales of the consumers; FY2009-2019
  63. SWOT matrix for large-scale companies with favorable conditions
  64. Strategies positioning for large-scale companies with favorable conditions
  65. SWOT matrix for large-scale companies with unfavorable conditions
  66. Strategies positioning for large-scale companies with unfavorable conditions
  67. SWOT matrix for small enterprises with favorable conditions
  68. Strategies positioning for small enterprises with favorable conditions
  69. SWOT matrix for small enterprises with unfavorable conditions
  70. Strategies positioning for small enterprises with unfavorable conditions

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