Oman-based steelmaker Al Jazeera Steel Products Company (Al Jazeera) has announced that it will increase its capacity utilization to 60 percent during 2015, compared to 40 percent in 2014, with the commissioning of its new
rebar mill by the beginning of the second quarter. The new
rebar mill will help the company to produce and sell an additional 4,000-5,000 mt of
rebar per month.
According to its financial results, the company saw a net profit of OMR 5.2 million ($13.5 million) in 2014, rising 14 percent compared to the previous year. In the same period, Al Jazeera's sales revenues increased by eight percent year on year to OMR 95.33 million ($169.7 million), with its sales volume amounting to 324,473 mt, up 12 percent year on year. The company's tube mill produced and sold 204,826 mt in 2014 compared to 180,060 mt in the previous year. Al Jazeera Steel stated that the increase in volume was mainly on account of the robust demand in the domestic market and improved sales in the US market.
According to Al Jazeera, 2015 will be a challenging year with oil prices hovering around $50, with predictions of a further drop in prices by the end of the first quarter this year. The reduction in iron ore prices as well as oil prices will help construction to be executed at affordable prices, since steel is a major component in construction costs. With World Expo 2020 to be held in Dubai, with the ongoing projects for the World Cup in
Qatar and the investment plans in infrastructure in the
Middle East, Al Jazeera expects demand for its products to be healthy, also with the hope of new demand to emerge from Iraq and Africa.