03 March 2012
MUSCAT -- Steel prices which witnessed an uptrend in the last quarters are now showing signs of stability providing the much-needed relief to the related sectors in the Sultanate. According to the survey of the Public Authority for Consumer Protection, there has not been any rise in the prices last month. The survey covered Omani, Turkish, UAE and Qatari steel and focused on the prices of four main companies; Bahwan, Al Ansari, Middle East Company and Oman Contracts and Construction Materials.
While the price of Emirati steel at Bahwan remained at RO 298, it fell at Al Ansari Company (RO 287 to 289). At the same time, Omani steel price was RO 298 at Bahwan, Oman Contracts and Construction Materials Company and Middle East Company. The prices of Turki and Qatari steel remained stable, the data released at the end of February shows.
Reports from the industry indicate that all steel manufacturing units in the Sultanate are running on maximum capacity production. According to Ramesh Gopal, General Manager, Production, Sharq Sohar Steel Rolling Mills, the company has crossed 100 per cent production level. The domestic demand is so high that the company has stopped exports and is planning to go in for further expansion.
"We expect that with the rise in demand from various industrial sectors and favourable government support, the steel demand in the country is expected to increase between 7 to 10 per cent this year", he told Observer. The steel sector in the Sultanate has been tremendously growing on the back of increased government spending on infrastructure and rising demand from various consumption sectors.
"The government's proactive incentive plans to boost economic growth by injecting funds in various industries, such as construction, infrastructure, and power will help the steel industry to register more growth", he says. Sharq Sohar Steel produces 300,000 tonnes per annum reinforcement steel rebars of 8mm to 32 mm, while Sohar Steel's capacity is 250,000 tonnes of steel billets.
Producers are optimistic of Oman's potential to become a major steel producer in the region, with the government taking substantial investments in developing its steel production capacity primarily to supply enough to the local market.
Construction industry has one of the strongest economic linkages with other sectors like steel and cement of the economy and has a very strong multiplier effect.
The domestic demand for steel by this sector is likely to pick up in the current fiscal year as part of increase in the governments' efforts to boost investments in construction activities.
"Private investment in the construction sector is also expected to pick up steam this year thanks to rising residential demand for housing", he adds.
As far as the prices concerned, he says: "Like other metals, variation in the prices of steel happens at par with international markets. It is not possible to have indigenous controls". Oman imports steel from Qatar, Turkey and the UAE.
MUSCAT -- Steel prices which witnessed an uptrend in the last quarters are now showing signs of stability providing the much-needed relief to the related sectors in the Sultanate. According to the survey of the Public Authority for Consumer Protection, there has not been any rise in the prices last month. The survey covered Omani, Turkish, UAE and Qatari steel and focused on the prices of four main companies; Bahwan, Al Ansari, Middle East Company and Oman Contracts and Construction Materials.
While the price of Emirati steel at Bahwan remained at RO 298, it fell at Al Ansari Company (RO 287 to 289). At the same time, Omani steel price was RO 298 at Bahwan, Oman Contracts and Construction Materials Company and Middle East Company. The prices of Turki and Qatari steel remained stable, the data released at the end of February shows.
Reports from the industry indicate that all steel manufacturing units in the Sultanate are running on maximum capacity production. According to Ramesh Gopal, General Manager, Production, Sharq Sohar Steel Rolling Mills, the company has crossed 100 per cent production level. The domestic demand is so high that the company has stopped exports and is planning to go in for further expansion.
"We expect that with the rise in demand from various industrial sectors and favourable government support, the steel demand in the country is expected to increase between 7 to 10 per cent this year", he told Observer. The steel sector in the Sultanate has been tremendously growing on the back of increased government spending on infrastructure and rising demand from various consumption sectors.
"The government's proactive incentive plans to boost economic growth by injecting funds in various industries, such as construction, infrastructure, and power will help the steel industry to register more growth", he says. Sharq Sohar Steel produces 300,000 tonnes per annum reinforcement steel rebars of 8mm to 32 mm, while Sohar Steel's capacity is 250,000 tonnes of steel billets.
Producers are optimistic of Oman's potential to become a major steel producer in the region, with the government taking substantial investments in developing its steel production capacity primarily to supply enough to the local market.
Construction industry has one of the strongest economic linkages with other sectors like steel and cement of the economy and has a very strong multiplier effect.
The domestic demand for steel by this sector is likely to pick up in the current fiscal year as part of increase in the governments' efforts to boost investments in construction activities.
"Private investment in the construction sector is also expected to pick up steam this year thanks to rising residential demand for housing", he adds.
As far as the prices concerned, he says: "Like other metals, variation in the prices of steel happens at par with international markets. It is not possible to have indigenous controls". Oman imports steel from Qatar, Turkey and the UAE.
The Sultanate has facilitated $12 billion in investments to develop Sohar Industrial Port and establish a competitive steel cluster by providing leading logistic networks, adopting advance energy and power supply technologies, maintaining a well trained labour force in addition to provision of land and access to raw materials.
At present, Oman has many leading players in the steel making business as it begins a steel intensive phase of economic development. With the national steel consumption expected to double by 2015, steel producers in the country are expected to garner a competitive advantage by streamlining these businesses.
© Oman Daily Observer 2012
