Posted on 02 May 2024
The steel sdegment of Industries Qatar (IQ) saw production increase 6.7% on-year and 13.7% on-quarter in the first quarter of 2024 to 1.16 million tonnes, notes Kallanish.
Average selling prices fell to $541/tonne versus $553/t in Q4 2023 and $566/t in Q1 2023. Meanwhile, steel segment sales volumes inched up 5.8% on-quarter but declined 11.6% on-year to 527,000t in Q1, IQ says in its quarterly performance report seen by Kallanish.
Revenue rose 3.6% on-quarter but fell 15.5% on-year to QAR 1.03 billion ($285.1m). In contrast, profit plummeted 74.8% on-quarter but grew 16.4% on-year to QAR 156m in Q1.
On a quarter-on-quarter basis, plunging segment profits were mainly due to lower non-operating income. The segment received one-off non-recurring other income in Q4 2023. This was related to the reversal of an impairment of its operating facilities, which amounted to QAR 550 million, IQ observes
Weak international and domestic demand reflected on its sales volumes. "Construction demand continued to remain challenging due to prevailing macro-economic environment, with most central banks continuing to persist with their hawkish monetary policies," it adds
IQ owns 100% of Qatar Steel in Doha, Al-Qataria Steel in Qatar and its Dubai-based re-rolling subsidiary, Qatar Steel Company FZE, 25% of Foulath Holding in Bahrain and 31.03% of Solb Steel Company in Saudi Arabia.
Solb Steel in Jazan (Saudi Arabia) is prepared to receive its billet cargo from the parent company in mid-May and commence rebar production and continue with wire rod production in late June.
Source:Kallanish
