Middle East & Africa Steel Rebar Market Outlook, 2030

The Middle East and Africa steel bar market is undergoing significant transformation driven by both regional and global dynamics. The market's evolution is characterized by a surge in infrastructure projects, largely attributed to the region's ambitious urbanization and industrialization goals. Countries like Saudi Arabia, the UAE, and Qatar are ramping up their construction sectors, spurred by their Vision 2030 initiatives, which focus on developing sustainable cities and boosting economic diversification. This has led to an increased demand for steel bars, especially in the construction of skyscrapers, bridges, and residential complexes. Additionally, the rise in government spending on infrastructure development across Africa, particularly in nations like Nigeria, South Africa, and Egypt, is driving the market forward. The scope and purpose of the steel bar market in this region are intrinsically linked to these large-scale projects, with steel bars being essential for reinforcing concrete in construction, particularly in the rising demand for high-quality, durable materials. In the context of the global market, the Middle East and Africa represent an emerging hub for steel production and consumption, with the region seeing a rise in local manufacturing capabilities. Local steel producers are positioning themselves to meet the demand, and some are also beginning to adopt advanced technologies to improve production efficiency. This evolution is further influenced by the growing need for sustainable practices, which has pushed many manufacturers to explore eco-friendly production processes. Moreover, trade dynamics are shifting, with increased investments from global players seeking to capitalize on the region's growth.

According to the research report ""Middle-East and Africa Steel Rebar Market Outlook, 2030,"" published by Bonafide Research, the Middle-East and Africa Steel Rebar market is anticipated to grow at more than 4.71% CAGR from 2025 to 2030. The economy of this region has increasingly shifted towards diversification, with construction, manufacturing, and infrastructure now playing a central role. Steel bars, critical for construction and industrial use, contribute significantly to this transformation. In 2023 and 2024, the market is set to grow due to ongoing mega-projects, such as the development of NEOM and Red Sea resorts, which require substantial steel bar supplies. The market's growth post-COVID has been notable, as the pandemic initially caused delays in production and logistics, but recovery efforts have led to renewed demand. Raw material costs were impacted during the pandemic, causing temporary price hikes and uncertainty in supply chains; however, the resurgence in demand for construction and manufacturing has helped stabilize these effects. Saudi Arabia continues to import scrap steel from global suppliers, particularly from Europe and Asia, to support its growing production capacity. Locally, Saudi steel mills such as SABIC and Al Ittefaq Steel dominate the market by offering competitively priced products with a strong focus on quality and production efficiency. These companies are also heavily investing in technologies like electric arc furnaces to reduce environmental impact. While dominant players continue to drive the market with their established infrastructure, new entrants, such as Al-Khayyat Steel, are attempting to carve out their niche by emphasizing cost-effective solutions for small to medium-sized construction projects. These new players face challenges related to capital investment and scaling production, competing with well-established companies that have already cemented their position.

Market Drivers

• Infrastructure Development and Urbanization:The rapid urbanization in Middle Eastern nations such as Saudi Arabia, UAE, and Qatar, driven by national development plans like Saudi Vision 2030, is a critical driver for steel rebar demand. Large-scale construction projects including smart cities, high-rise buildings, and expansive transportation networks (roads, bridges, airports) require substantial amounts of steel rebar to ensure structural integrity. Urban expansion across the African continent, particularly in countries like Nigeria and South Africa, is also fueling the demand for rebar in housing, commercial buildings, and energy infrastructure.
• Energy and Industrial Infrastructure Growth:The energy sector in the Middle East, especially oil and gas projects, is a significant demand driver for steel rebar. Large-scale facilities such as refineries, power plants, and petrochemical complexes rely heavily on rebar for reinforcement. In Africa, the increasing push for energy infrastructure development, such as power plants and renewable energy projects, also drives the demand for high-strength, durable rebar to support critical construction needs in these industries.

Market Challenges

• Geopolitical Instability and Supply Chain Disruptions: The Middle East and North Africa (MENA) regions often face political instability, particularly in countries like Libya, Syria, and Yemen. This instability disrupts the supply chain of steel rebar, leading to delays in material deliveries, increased shipping costs, and reduced manufacturing capabilities. Trade barriers and sanctions can further complicate imports of raw materials, leading to inconsistent supply and higher market volatility.
• Raw Material Cost Fluctuations and Supply Dependence:Many countries in the MEA region rely heavily on imported raw materials such as iron ore and scrap metal for steel production. The volatility in global commodity prices, influenced by factors like international demand shifts and environmental regulations, can significantly affect the pricing and availability of steel rebar. The challenge of securing reliable sources of these raw materials adds a layer of uncertainty for manufacturers, potentially leading to price instability and constrained production capabilities.

Market Trends
• Increased Focus on Sustainability and Green Steel Production: In response to growing environmental concerns and regulations, the MEA steel rebar market is witnessing a shift toward greener production methods. The use of electric arc furnaces (EAF) and increased recycling of steel scrap are becoming more prevalent in countries like the UAE and Saudi Arabia. These methods lower carbon emissions and reduce the environmental impact of steel production, aligning with the broader sustainability goals of the region, particularly in line with the Paris Agreement.
• Rising Demand for High-Strength Steel Rebar:The MEA region is increasingly adopting high-strength steel rebars due to their enhanced durability and ability to withstand extreme environmental conditions, including seismic activity and high temperatures. Countries like Turkey, Iran, and those in the GCC are particularly focused on these types of rebars for constructing earthquake-resistant infrastructure. As large-scale projects grow in complexity, there is a rising demand for high-performance steel to ensure safety and longevity in infrastructure development.

Mild Steel Rebar is the largest and fastest-growing segment in the South American steel rebar industry due to its affordability, widespread availability, and essential use in large-scale construction projects across the region.

Mild Steel Rebar has seen substantial growth in South America because of its cost-effectiveness and versatility in various construction applications, making it the preferred choice for reinforcing concrete in both residential and large infrastructure projects. In countries like Brazil, Argentina, and Chile, the construction industry’s demand for durable and affordable reinforcement bars has escalated, particularly with the region’s push toward developing new urban areas and modernizing its infrastructure. Mild Steel Rebar’s ability to withstand moderate levels of tensile stress while remaining economically viable has made it an indispensable material in the South American construction sector. As a result, local manufacturers like Gerdau and ArcelorMittal have focused on increasing their production capacity to meet the growing demand, ensuring that the supply of mild steel rebar remains steady and competitive in the market. The material’s adaptability to different building types—from high-rise buildings to industrial structures—has further fueled its popularity, with significant growth noted in large urban centers like São Paulo, Rio de Janeiro, and Buenos Aires. The affordability of mild steel rebar compared to other types of rebar, such as high-strength or stainless steel variants, is particularly important in cost-sensitive markets in South America, where budget constraints often influence construction decisions. Additionally, the ongoing government investments in infrastructure and housing projects have led to higher consumption of mild steel rebar in public and private construction. The ease of distribution across the region, thanks to well-established logistics networks, has further driven market expansion.

Basic Oxygen Steelmaking (BOS) is the largest market in the South American steel rebar industry due to its efficient production process, cost-effectiveness, and the increasing demand for high-quality steel in large-scale construction and infrastructure projects across the region.

BOS has become the dominant steel production method in South America because it enables the large-scale, efficient production of high-quality steel at relatively lower costs compared to other methods, making it ideal for meeting the growing demand for steel bars in the region’s expanding construction sector. Brazil, as the largest steel producer in South America, has embraced the BOS process due to its ability to convert iron ore into steel quickly while maintaining high levels of productivity. The increasing focus on infrastructure development and urbanization, particularly in Brazil, Argentina, and Chile, has led to a surge in demand for high-strength, durable steel, which BOS efficiently produces. South American steel manufacturers have leveraged the BOS method to meet the strict quality requirements for rebar, which is essential for reinforcing concrete in high-rise buildings, bridges, and other critical infrastructure. The energy efficiency and cost-effectiveness of the BOS process have also contributed to its dominance in the region, as it allows for better use of raw materials and minimizes energy consumption, leading to competitive pricing in the global market. The process’s ability to recycle scrap steel further aligns with the growing trend of sustainability in the South American steel industry, especially in countries with significant scrap steel availability, such as Brazil. Moreover, the established infrastructure and technological expertise in South American countries have enabled steel producers to continue optimizing their BOS facilities, increasing output and reducing production costs.

Plain Carbon Steel Rebar is the largest market in the South American steel rebar industry due to its widespread use in construction projects, cost-effectiveness, and high availability, particularly for infrastructure and residential building applications across the region.

Plain Carbon Steel Rebar dominates the South American steel rebar market because it offers a balance of strength, durability, and affordability, making it an ideal choice for a wide range of construction projects. The growing demand for affordable and reliable construction materials, especially in fast-developing economies such as Brazil, Argentina, and Chile, has fueled the widespread adoption of plain carbon steel rebar. Its straightforward composition, primarily made of iron with small amounts of carbon, provides sufficient tensile strength and flexibility to meet the requirements of basic construction needs without the high costs associated with other specialized types of rebar. In South America, where budget-consciousness often dictates material choices, plain carbon steel rebar’s cost-effectiveness makes it particularly attractive for large-scale residential and commercial projects, including housing developments and urban infrastructure. Its consistent availability, coupled with efficient local production from major regional steel manufacturers like Gerdau and ArcelorMittal, further reinforces its dominance in the market. The material’s suitability for use in a wide variety of climates, including regions prone to seismic activity like Chile, has also contributed to its adoption in structural applications across South America. Plain carbon steel rebar is commonly used in foundations, floors, and walls, which are crucial in both small and large construction projects. While newer materials are gaining popularity in more specialized sectors, the broad applicability and low cost of plain carbon steel rebar ensure it remains the largest segment in the South American steel rebar market.

Grade 60 rebar is the largest market in the South American steel rebar industry due to its optimal balance of strength, cost-effectiveness, and suitability for a wide range of construction applications, particularly in large-scale infrastructure and commercial projects.

Grade 60 rebar, known for its high tensile strength of 60,000 psi, has become the dominant segment in South America’s steel rebar market because it offers a combination of strength and affordability, making it ideal for the region's growing construction needs. The demand for Grade 60 rebar has surged across South America as urbanization accelerates and large-scale infrastructure projects continue to expand. This grade of rebar is widely used in critical applications such as bridges, highways, high-rise buildings, and industrial structures, which require reinforcement materials that can withstand significant stress and provide long-term durability. Countries like Brazil, Argentina, and Chile, which are experiencing rapid infrastructure development and modernization, favor Grade 60 rebar for its ability to handle the demands of large concrete structures without excessive cost. It offers a solid balance between performance and price, making it an attractive option for construction projects that require structural integrity while remaining budget-conscious. Grade 60 rebar's versatility also makes it suitable for various environmental conditions, including seismic zones, where the material's high strength is crucial for ensuring building resilience. The widespread availability of Grade 60 rebar from local manufacturers like Gerdau and ArcelorMittal has further driven its dominance in the market. These companies have optimized their production processes to meet the demand for high-quality, cost-effective reinforcement bars, ensuring a steady supply for both public and private sector projects. The material’s ability to perform reliably in a wide range of applications, coupled with its competitive pricing, has made it the go-to choice for most construction projects in South America.

Argentina is a significant market in the South American steel rebar industry due to its rapidly expanding construction and infrastructure sectors, driven by government investments and urban development initiatives.

Argentina plays a crucial role in the South American steel rebar market because of its growing demand for construction materials fueled by large-scale infrastructure projects and a boom in urban development. As the country focuses on modernizing its infrastructure and addressing urbanization challenges, the demand for steel rebar, particularly for reinforcing concrete, has surged. Argentina's government has implemented various public-private partnership initiatives to improve transportation networks, including roads, railways, and airports, as well as investing in energy infrastructure like wind farms and hydroelectric plants. These large-scale projects, which are essential for Argentina’s economic growth and regional competitiveness, require substantial quantities of steel rebar, making it a critical component of the construction sector. In addition to infrastructure development, Argentina’s booming real estate sector, with increasing residential and commercial construction, has further driven the need for rebar in the country. Buenos Aires, Cordoba, and Mendoza are some of the major urban centers witnessing this demand. Argentina’s proximity to key regional markets and its developed logistics infrastructure have made it a strategic hub for steel production and distribution within South America. Major steel manufacturers such as Ternium Argentina and Acindar have invested in state-of-the-art technology to boost their production capacity, ensuring a consistent supply of high-quality rebar for domestic use and export. Argentina also benefits from a robust steel recycling industry, which supports the country’s environmental goals while providing a sustainable source of raw materials for rebar production.

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

Aspects covered in this report
• Steel Rebar 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
• Mild Steel Rebar
• Deformed Steel Rebar

By Process
• Basic Oxygen Steelmaking (BOS)
• Electric Arc Furnace (EAF)

By End-Use Industry
• Construction
• Infrastructure
• Energy & Utilities

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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