Sundeep Rao: Sohar Steel’s meltshop upgrade will be a new step forward

Friday, 29 March 2013 18:03:10 (GMT+3)   |   Istanbul
       

Sundeep Rao, director of Oman-based Sohar Steel, which produces rebars, coated rebars and weld mesh, has answered SteelOrbis' questions regarding the market outlook and Sohar Steel's operations.
 
What is the situation regarding Sohar Steel's meltshop upgrade project? Are you planning to import steel billet in the future?
 
Our meltshop upgrade will be completed by the end of 2013. After the upgrade of 500,000 mt per year, the total capacity will reach 700-750,000 mt per year. The meltshop can also be fed by DRI and HBI. We are using all raw materials at present: scrap, HBI and DRI. We are awaiting approval from the government for gas availability for our future DRI plant project.
 
Our plans for importing billet depend on the market situation and demand. It is too soon to say anything on the matter. We will certainly run our billet production at full capacity and will continue to produce rebar. At present, the capacity of our melting plant is 330,000 mt and the capacity of our rolling mill is 320,000 mt. The future melting capacity will be 700-750,000 mt after the upgrade and we will add a new rolling mill with an annual production capacity of 700,000 mt. So our total rolling capacity will be approximately one million mt per year. However, it is the market which will tell us how much of this capacity will be used. The meltshop upgrade will definitely be a new step forward for the Omani long steel market.
 
How do you supply scrap, from which markets?
 
We have been buying scrap from the local market, Europe and the US. And at present we opt to import scrap in containers. However, we are planning also to import scrap by bulk shipments in the future. There is no duty on import of raw materials and we will import scrap and billet in line with our requirements in future.
 
What is the demand situation in Oman for your products? What is the situation regarding infrastructure projects in Oman?
 
Annual demand for rebars in Oman is approximately 800,000 mt according to the 2013 figures. We expect to export approximately 30 percent of our production, i.e., around 200,000 mt, to other GCC markets. The GCC market, excepting the UAE, will witness an annual rebar consumption growth rate of eight to 10 percent in the foreseeable future.


Similar articles

Turkey’s Kardemir issues planned sales volumes for April-June

22 Mar | Steel News

Iran’s steel exports up 7.6 percent in first 11 months of Iranian year

20 Mar | Steel News

Italy’s Feralpi Group to meet construction sector’s carbon-reduced rebar demand

20 Feb | Steel News

China comes back from long holiday with mixed signals

19 Feb | Flats and Slab

Iran’s steel exports up 9.1 percent in first 10 months of Iranian year

14 Feb | Steel News

Hyundai Steel to carry out long-term repair works on EAFs at Incheon and Dangjin

24 Jan | Steel News

Vietnam’s Hoa Phat posts 7.0 percent decrease in sales for 2023

09 Jan | Steel News

Vietnam’s Hoa Phat posts higher construction steel sales amid rising consumption

08 Dec | Steel News

Positive mood amid mixed fundamentals, property stimulus news boosts Chinese steel market

15 Nov | Longs and Billet

Turkey-based IDC posts net loss for January-September

08 Nov | Steel News