Exports of semi-finished steel to Lebanon nearly doubled in October

Whereas in the first month of autumn 76,000 tonnes of semi-finished steel products were delivered to Lebanon, in the second month 144,000 t were shipped. In terms of finished products, earlier Ukraine’s steelmakers delivered little to this country, with barely 1 tonne shipped in September. By November more than 40,000 t had been shipped.

The main reason for the growth in demand for Ukrainian steel products is a revival in Lebanon’s construction industry. In the last while, as the political situation in the country has stabilized after a long conflict with its neighbor, Israel, Lebanon has become more attractive to foreign investors. For instance, the biggest builders from Dubai, Emaar Properties, have begun a project in Lebanon that is worth US $800 million.

Thanks to builders, demand for long-length rolled metal has grown in recent months, including demand for this product from Ukrainian manufacturers. The primary supplier of this type of product to Lebanon is Ukraine’s largest steel mill, ArcelorMittal Kryviy Rih, which accounts for two thirds of all deliveries from Ukraine.

Demand on the Lebanese market for billets, a semi-finished steel product, has also grown. The main supplier of this kind of commodity in Ukraine is the Dzerzhynskiy Dnipro Steelworks, owned by Serhiy Taruta’s ISD, the Industrial Union of Donbas. According to analysts at Astrum Investment, an investment company, this steelworks supplies around 90% of all exports of semi-finished steel products to Lebanon.

Growing demand in Lebanon and across the Middle East has made it possible for the DDS plant to work steadily for the last few months. In November, the plant’s output of steel grew 9% in November, compared to October.

Tags: industry, export