The steel segment of Industries Qatar (IQ) saw its production increase by 6.7% year-on-year and 13.7% quarter-on-quarter in the first quarter of 2024, reaching 1.16 million tonnes.

However, average selling prices fell to $541 per tonne, compared to $553 per tonne in Q4 2023 and $566 per tonne in Q1 2023. Meanwhile, steel segment sales volumes inched up 5.8% quarter-on-quarter but declined 11.6% year-on-year to 527,000 tonnes in Q1, according to IQ's quarterly performance report.

Revenue rose 3.6% quarter-on-quarter but fell 15.5% year-on-year to QAR 1.03 billion ($285.1 million). In contrast, profit plummeted 74.8% quarter-on-quarter but grew 16.4% year-on-year to QAR 156 million in Q1.

The plunging segment profits on a quarter-on-quarter basis were mainly due to lower non-operating income. The segment had received a one-off non-recurring other income in Q4 2023, related to the reversal of an impairment of its operating facilities, amounting to QAR 550 million.

Weak international and domestic demand reflected on its sales volumes. "Construction demand continued to remain challenging due to the prevailing macroeconomic environment, with most central banks continuing to persist with their hawkish monetary policies," the company added.

IQ owns 100% of Qatar Steel in Doha, Al-Qataria Steel in Qatar, and its Dubai-based re-rolling subsidiary, Qatar Steel Company FZE. It also holds a 25% stake in Foulath Holding in Bahrain and a 31.03% stake in 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.