Demand for Al Yamamah Steel products to continue in Q2 2022: CEO

Yousef Bazaid CEO of Al Yamamah Steel Industries Co.

Yousef Bazaid, Chief Executive Officer (CEO) of Al Yamamah Steel Industries Co., expects demand for the company’s products to continue in the second quarter of 2022, with prices moving in tandem with the global iron ore prices that rebounded at the beginning of the year.   

A drop in iron ore prices weighs on the profit margins of Al Yamamah’s consumer products, such as pipes and reinforcing steel bars, amid pressure on selling prices and disposal of high-cost inventory, Bazaid told Argaam in a phone interview.

On the other hand, the expansion of Jeddah and Dammam pipe factories will be implemented gradually and is expected to be finalized in the first quarter of 2023.

Replying to a question about Al Yamamah Wind Power Systems project, Bazaid said construction is ongoing at site. The company is in talks for production lines and the new facility is expected to commence operations in Q2 2023.

The steel producer reported a net profit after Zakat and tax of SAR 34 million for the first quarter ended Dec. 31, 2021, a 20% decline from SAR 42.7 million a year earlier, Argaam reported.