Middle East & Africa Carbon Steel Market Outlook, 2030

The carbon steel market in the Middle East and Africa (MEA) is vital for the region's economic development, fueled by its various applications across sectors including construction, automotive, energy, and manufacturing. Carbon steel is primarily an alloy of iron and carbon, along with trace elements such as manganese, silicon, and sulfur. The properties of carbon steel are influenced by its carbon content, which makes it suitable for a range of applications. Low carbon steel, commonly referred to as mild steel, is extensively utilized for structural and construction applications because of its malleability and ease of fabrication. Medium and high carbon steels, providing enhanced strength and wear resistance, are used in the production of tools, machinery, and industrial equipment. The construction and infrastructure sectors primarily drive the demand for carbon steel in the MEA region, with nations such as Saudi Arabia, the UAE, and South Africa making significant investments in large-scale development initiatives. This encompasses the building of roads, bridges, commercial properties, and housing projects, all of which necessitate substantial quantities of carbon steel. The demand for carbon steel is significantly driven by the energy sector, especially in oil and gas exploration and production, as this material is crucial for pipelines, refinery equipment, and other industry infrastructure. Moreover, the automotive sector within the MEA region, while smaller compared to others, has demonstrated steady growth, particularly in nations like South Africa and Morocco, which depend on carbon steel for the production of vehicle components. The ongoing industrialization, urbanization, and expansion of infrastructure throughout the region continue to escalate the demand for carbon steel, rendering it a critical material for the MEA market. With these significant sectors fostering growth, carbon steel remains a fundamental element of the region's industrial advancement.

According to the research report, ""Middle East Africa Carbon Steel Market Outlook, 2030,"" published by Bonafide Research, the Middle East Africa Carbon Steel market is anticipated to grow at more than 3.09% CAGR from 2025 to 2030. The promotion and marketing of carbon steel in the Middle East and Africa (MEA) market are greatly affected by regional regulations and strategic initiatives that aim to enhance industrial growth. Numerous countries within the MEA region have established policies that not only encourage local steel production but also facilitate the importation and distribution of high-quality carbon steel products. These regulations are intended to safeguard domestic steel industries, guarantee product quality, and promote competition within the market. For example, import tariffs, subsidies for local steel manufacturers, and trade agreements are frequently used to enhance the production capacity and export potential of steel products. Moreover, there are rigorous quality control standards, typically set by governmental authorities or international certification organizations, ensuring that carbon steel products fulfill the necessary specifications for a range of applications, from construction to automotive manufacturing. The beneficial effects of these promotional strategies and regulations have been significant. Local steel producers gain from protectionist policies, enabling them to fulfill domestic demand while enhancing their competitiveness in international markets. This leads to increased production capacity, job creation, and technological advancements, which further support the regional economy. For instance, Saudi Arabia, through its Vision 2030 initiative, has stimulated the development of extensive infrastructure projects, creating demand for domestically produced carbon steel. In a similar way, the UAE’s emphasis on sustainable urban development and infrastructure has developed a consistent market for carbon steel products. These marketing and promotional initiatives support the incorporation of sustainability within the sector. By promoting environmentally friendly manufacturing methods and highlighting the recyclability of carbon steel, MEA countries are aligning with global sustainability trends, attracting investment and promoting positive environmental outcomes.

Market Drivers

• Infrastructure Development and Urbanization: A major driver of the carbon steel market in the Middle East and Africa (MEA) region is the rapid pace of urbanization and infrastructure development. Nations in the MEA region, specifically Saudi Arabia, the UAE, and South Africa, are engaging in extensive urbanization initiatives that require substantial amounts of carbon steel for construction and infrastructure endeavors.
• Energy Sector Growth: Another significant driver for the MEA carbon steel market is the expansion of the energy sector, particularly concerning oil, gas, and renewable energy projects. Carbon steel is extensively utilized in pipelines, refinery machinery, and power generation systems, all of which are vital for energy infrastructure.

Market Challenges

• Raw Material Price Volatility: The MEA region is heavily dependent on global supply chains for the raw materials required in carbon steel production, such as iron ore and coking coal. The prices of these raw materials can be unpredictable due to geopolitical issues, trade regulations, and environmental policies. Such volatility can influence the production costs for local manufacturers, creating challenges in maintaining competitive pricing within the marketplace.
• Environmental Regulations and Sustainability Concerns: The growing demand for environmentally friendly manufacturing processes poses a challenge for the MEA carbon steel market. Governments in the region are progressively implementing stricter environmental regulations aimed at minimizing carbon emissions and promoting sustainable practices. Steel manufacturing is a demanding resource process, and complying with these new regulatory standards can be expensive for producers.

Market Trends

• Increasing Emphasis on Recycling and Circular Economy: A notable trend in the MEA carbon steel market is the rising focus on recycling and circular economy initiatives. Steel can be recycled extensively, and numerous MEA nations are implementing policies that encourage the reuse of scrap steel to minimize environmental effects.
• Transition to High-Strength Steel Products: With infrastructure projects becoming more intricate and demanding, there is a growing shift toward the utilization of high-strength carbon steel products. These materials provide improved durability, strength, and corrosion resistance, making them suitable for high-performance applications across industries such as construction, automotive, and energy.

Low Carbon Steel (Mild Steel) is the leading and fastest-growing material in the MEA carbon steel market due to its extensive application in construction, automotive, and manufacturing sectors, along with its cost-effectiveness and high flexibility.

Mild steel, which has a lower carbon content compared to other forms of carbon steel, is favored across numerous industries in the MEA area. Its affordability, ease of production, and outstanding versatility in various applications make it a vital resource for building construction, road development, and bridge work, as well as for use in the automotive and machinery industries. In the rapidly expanding infrastructure and industrial projects within MEA, mild steel’s capacity to endure moderate stress and its large-scale availability enhance its market dominance. Moreover, it is straightforward to weld, machine, and shape, which makes it perfect for multiple manufacturing methods. In nations such as Saudi Arabia, the UAE, and Egypt, ongoing construction and development efforts, especially in urbanization and infrastructure, lead to considerable demand for mild steel. It’s performance under high temperatures and resistance to corrosion (with appropriate treatment) in the harsh environments typical of the MEA region increase its attractiveness. Mild steel also plays a vital role in industries like oil and gas, where the need for robust, cost-efficient materials is crucial. Consequently, the utilization of low carbon steel in MEA is continually growing, propelled by industrial expansion, government-led development programs, and its natural economic benefits over higher carbon steel varieties. This mix of affordability, strength, and adaptability guarantees its leadership and swift growth within the regional market.

Building and Construction is at the forefront of the MEA carbon steel market due to the region's swift urbanization, infrastructure growth, and increasing need for robust, affordable materials.

The MEA area has experienced a surge in construction and infrastructure initiatives fueled by urban growth, an increase in population, and government efforts to update infrastructure. This encompasses extensive residential, commercial, and industrial structures, along with roadways, bridges, and energy facilities that necessitate large quantities of carbon steel. Among the various varieties of steel, carbon steel, particularly low and medium carbon steel, is preferred for its affordability and strength, making it suitable for construction purposes. The building and construction industries in nations such as Saudi Arabia, the UAE, and Egypt are key contributors to the carbon steel market, as they heavily invest in infrastructure projects, including smart cities, transportation systems, and eco-friendly building initiatives. Carbon steel is utilized in numerous construction components, such as structural beams, reinforcing bars (rebar), and pipes, owing to its excellent tensile strength and durability. The material’s capacity to be easily shaped and welded provides greater adaptability in design and construction processes. Furthermore, the MEA region's severe environmental conditions, including extreme heat and corrosion, enhance the value of carbon steel's reliability in such environments, provided it is adequately treated. The ongoing efforts toward economic diversification in the region, exemplified by Saudi Arabia's Vision 2030, emphasize the development and enhancement of infrastructure, further driving the need for carbon steel in construction. Consequently, the building and construction sector continues to lead the MEA carbon steel market, laying the essential groundwork for economic advancement and modernization.

Flat Products are at the forefront of the MEA construction carbon steel market because of their extensive use in building infrastructure, projects, and the production of construction components that necessitate large, flat surfaces and strength.

Flat products, including steel plates, coils, and sheets, play a critical role in the construction sector, especially in the MEA area, where there is a growing demand for large-scale infrastructure initiatives, such as residential and commercial buildings, roads, bridges, and energy facilities. These products are preferred for their capacity to be applied in various construction components like beams, panels, and flooring systems. Specifically, flat products are widely utilized in structural applications, including steel cladding, roofing, and wall panels, which require both toughness and resistance to environmental elements such as corrosion. The climate of the MEA region, which frequently experiences high temperatures and humidity, requires materials that can endure these extreme conditions without compromising structural integrity. Flat products composed of carbon steel offer the needed strength, flexibility, and resistance to corrosion for these applications. Furthermore, the simplicity with which flat products can be cut, welded, and molded into varying shapes enables greater design adaptability, rendering them vital in contemporary construction methods. The adaptability of flat steel products allows them to be utilized across multiple sectors in construction, encompassing residential, commercial, and industrial fields, thereby enhancing their prominence in the market. With nations like Saudi Arabia, the UAE, and Qatar persistently investing in infrastructure enhancement, the demand for flat carbon steel products remains robust. The capability of these products to satisfy the scale and requirements needed for such substantial projects, coupled with cost efficiency and strength, guarantees their ongoing dominance in the MEA construction carbon steel market.

Saudi Arabia leads the MEA carbon steel market due to its strategic investments in expanding steel production capabilities, supported by abundant energy resources and government initiatives.

The Kingdom of Saudi Arabia has become a leading force in the Middle East and Africa (MEA) carbon steel market, thanks to various strategic benefits and investments. The nation’s plentiful natural resources, especially its extensive reserves of natural gas and oil, offer a dependable and economical energy source for steel manufacturing. This energy edge lowers production expenses and boosts the global competitiveness of Saudi Arabian steel. Furthermore, the Saudi government’s ambitious Vision 2030 strategy aims to diversify the economy and lessen reliance on oil revenues. In line with this plan, substantial investments have been made in the steel production industry to enhance domestic output and satisfy the increasing need for infrastructure and construction materials. Saudi Arabia’s strategic geographical positioning provides a logistical benefit, facilitating the efficient export of steel products to nearby regions and beyond. The government has also enacted measures to lure foreign investments and collaborations in the steel sector, promoting technological progress and capacity growth. Prominent companies within the industry, such as Saudi Iron and Steel Company (Hadeed), have consistently modernized their facilities and embraced innovative technologies to elevate the quality and efficiency of steel production. These collective endeavors have established Saudi Arabia as a crucial supplier of carbon steel in the MEA region, fostering economic expansion and industrial advancement.


Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Carbon Steel Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Low Carbon Steel (Mild Steel)
• Medium Carbon Steel
• High Carbon Steel & Ultra High carbon Steel

By Application
• Building and Construction
• Automotive & Transportation
• Industrial Equipment
• Others

By Product Type
• Flat Products
• Long Products
• Pipe and Tubes
• Wire Products
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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