Dubai & Steel
Internationally, steel is a 1.2 billion tonnes industry, with some 400 million tonnes traded every year. The steel industry in the Middle East has witnessed significant growth in recent years, and approximately 50 million tonnes of steel is now traded and consumed in the region annually. Driven by the region’s infrastructure projects, the GCC’s per capita steel consumption is, at 380 kg, amongst the highest in the world. Dubai itself consumes in excess of 500 kg per capita, against the global average of 182 kg. Further, the combination of Dubai’s 6 million tonnes per annum import market, and its position at the crossroads of the world’s two dominant long product steel trade flows, determines Dubai is the critical benchmark pricing point along those trade flows:
- Steel flowing from China into the Far East and proceeding westwards towards South East Asia, Middle East and Europe, and
- Steel flowing from the Black Sea region, and proceeding eastwards to the Middle East, South East Asia, and the Far East
DMCC & Steel
Over the years DMCC has worked diligently to provide an infrastructure to attract an international steel community to Dubai. This infrastructure embraces the services of Group entities such as Jebel Ali Port, Jebel Ali Freezone, as well as DMCC initiatives such as TechnoPark and the Jumeirah Lake Towers complex. With 49 year tax holidays to support its licensing structure, local, regional, and international steel trading companies have established themselves in DMCC, and every month we cater to more steel-focused firms identifying with DMCC’s product offering and joining our growing steel community.
DGCX Steel Rebar Futures
As a result of Dubai’s key importance as a global steel pricing point, and to further serve existing and new steel clients, DMCC has initiated the development of the world’s first internationally recognized exchange-traded steel derivatives market, soon to be launched on DMCC’s commodities exchange, DGCX. Commencing with Steel Rebar Futures, but with a product pipeline servicing flat products and even the stainless steel industry, DGCX is looking to offer the steel community the financial instruments to better manage price risk in their business, whilst enhancing steel’s proposition to global financial investors who currently have no direct capacity to take exposure to a vibrant and expanding market.