Arab Steel reported that a boost in orders for new ships and offshore oil rigs in 2012 will result in greater steel consumption at two of the largest shipbuilding yards in the Gulf Cooperation Council. Bahrain’s Arab Shipbuilding & Repair Yard Company has recently expanded its capacity to accommodate more ships and increase its offshore rig and tug building capability. The firm sources 18,000tns to 20,000tns per year of EH36 grade, API grade 50 and stainless and duplex steel plate, as well as 5000tns per year of beams, channels, angles and bulb flats from producers in China, Korea, Japan, Ukraine and Romania.
An ASRY representative said that among its customers are the US and British navies, Kuwait oil tankers and Saudi Arabia. The market is increasing and procurement is expected to increase by 5000tns to 8000tns this year as a result of capacity expansion.