By: Zawya

A Shifting Global Center of Gravity

The opening day of the Middle East Iron & Steel 2025 conference highlighted the powerful forces reshaping the global industry, from shifting trade flows and rising protectionism to the urgent push for decarbonization. Against a backdrop of global oversupply and policy measures like the EU's carbon tax, speakers emphasized that the Middle East's massive project pipeline and industrial expansion are positioning it as an increasingly influential player in global supply and pricing.

The Double-Edged Sword of Protectionism

A key topic was the impact of protectionist policies, such as the doubling of US Section 232 tariffs, which have introduced significant volatility into Western markets. While these measures cause uncertainty, they are also redirecting surplus steel—estimated at 500-600 million tonnes—toward open markets like the MENA region. This influx has sparked debate, with industry leaders warning that while short-term safeguards may be necessary, long-term growth depends on fair competition and a level playing field.

The Middle East's Structural Advantages

In contrast to global volatility, the Middle East was portrayed as a bastion of stability and growth. Executives pointed to the region's predictable demand, driven by a $3 trillion project pipeline in construction and energy, and its inherent advantages in resource security and energy access. This environment provides the long-term visibility that many global competitors lack, fostering confidence for strategic investment.

The Defining Challenge of Decarbonization

Amidst market discussions, the green transition emerged as a critical frontier for future competitiveness. The conference highlighted technologies like hydrogen-based direct reduction and carbon capture as essential pathways. With its abundant energy resources and strong government mandates, the Middle East is seen as uniquely capable of scaling these low-carbon production methods to meet rising global demand.

A Platform for a Transforming Industry

The record-breaking attendance of over 1,400 delegates underscores the conference's role as the region's premier platform for navigating this complex era. The discussions concluded that the interplay of geopolitics, oversupply, and decarbonization is redefining global steel, with the Middle East poised to be a decisive voice in shaping the industry's future.