Qatar Steel, the steel subsidiary of Industries Qatar, reported a 39pct YoY increase in net profit to QAR 367 mln (USD 100.8 mln) in H1 2026, supported by higher average selling prices and lower operating costs despite a sharp decline in sales volumes.
Steel production increased 6pct YoY to 2.72 mln tons, while average selling prices rose 38pct to USD 654 per ton. Sales volumes, however, fell 32pct to 906,000 tons, resulting in a 6pct decline in revenue to QAR 2.16 bln (USD 592.6 mln). EBITDA increased 30pct to QAR 508 mln (USD 139.6 mln), lifting the margin to 24pct from 17pct.
The improvement in profitability was mainly driven by higher selling prices and lower operating costs, according to Industries Qatar. The company attributed the stronger prices to tightening regional supply conditions and recovering demand. On a QoQ basis, however, steel segment net profit declined as lower sales volumes more than offset higher average selling prices.
At group level, Industries Qatar reported revenue of QAR 5.9 bln (USD 1.62 bln), down 32pct YoY, while EBITDA fell 52pct to QAR 1.4 bln (USD 384.6 mln) and net profit declined 89pct to QAR 216 mln (USD 59.3 mln). The group said results were affected by the ongoing regional conflict, with sales volumes falling 46pct to 2.82 mln tons due to reduced production and shipping disruptions. Higher average selling prices and lower operating costs partly offset the impact.
Industries Qatar, established in 2003, holds a 100pct stake in Qatar Steel. The group also has interests in petrochemicals, fertilizers and other industrial operations.
Qatar Steel is the first steel plant established in the Arabian Gulf in 1974. Based in Mesaieed, with a subsidiary in Dubai’s Jebel Ali Free Zone, it produces DRI/HBI, billets, rebars, and wire rods. The Mesaieed plant has an annual capacity of 2.35 mln tons of DRI/HBI, 2.57 mln tons of billets, and 1.8 mln tons of rebars, while the UAE unit produces 240,000 tons of wire rods and 300,000 tons of rebars. Qatar Steel also operates rebar fabrication and coating facilities and holds stakes in Q-Coat (Qatar), Foulath Holding (Bahrain), and Solb Steel (Saudi Arabia).
1 USD / 3.64 QAR