Oman’s Al Jazeera Steel Products Co. reported significant profit growth for the first nine months of 2024, with profit reaching OMR 3.9 mln (USD 10.1 mln), a 62pct increase YoY, driven by strong construction demand in GCC markets. Revenue grew by 2pct YoY to OMR 108.35 mln (USD 280.5 mln), while production volume declined by 3pct to 326,603 tons, and sales decreased slightly by 1pct to 344,137 tons.
Chairperson Amal Suhail Salim Bahwan noted that geopolitical conflicts and economic volatility, particularly in China, led to increased freight rates and extended lead times, impacting export sales and margins. Weak demand in China spurred a surge in Chinese steel exports, affecting prices and volumes, especially in the Middle East.
The UAE’s recent Emirates Conformity Assessment Scheme aims to control low-quality steel imports, and similar regulations are being considered by other GCC nations. Al Jazeera Steel welcomes these quality standards and plans to work with stakeholders to support compliance efforts.
Despite challenges like inflation and high interest rates, the Middle East construction market remains robust, with a project pipeline valued at USD 3.9 trillion. In the UAE alone, projects worth USD 590 bln are expected in 2024, while Oman has awarded contracts totaling USD 482 mln for infrastructure developments. Growth in oil and gas projects across Oman, Saudi Arabia, and the UAE is also expected to boost steel demand.
To strengthen its market position, Al Jazeera Steel has improved its supply chains, focused on high-margin markets, and upgraded equipment. Enhancements to its tube mills now cater to the oil and gas sector, reducing reliance on commodity pipes. Additionally, automation and ERP integration have improved quality control and traceability, helping the company pass critical audits. Upgrades to the merchant bar mill, including Quasi Universal stands, have expanded its product range to include structural sections and new sizes including IPE 100, IPE 120 and flat bars in 150 mm in 8 and 10 mm thicknesses.
Established in 1996, Al Jazeera Steel Products Co. is a major steel producer with operations divided into two business segments: a tube mill and a merchant bar mill. The company’s tube mill facilities consist of four production lines with a combined annual capacity of 300,000 tons. The merchant bar mill also has an annual capacity of 300,000 tons and produces a range of steel products, including channels, angles, flats, squares, rounds, and rebars. In Saudi Arabia, Al Jazeera operates a subsidiary focused on importing and selling steel products made at its main plant in Oman. As part of its expansion strategy, the company is establishing a 450,000-ton medium section mill in Kezad, Abu Dhabi, UAE.
1 USD / 0.38 OMR
