Qatar Steel, the steel division of Industries Qatar, delivered a strong operational performance in the first half of 2025, with both revenue and production increasing, driven by higher sales volumes and the restart of key production facilities. However, lower prices and a high comparison base weighed on net profit.
According to the company’s financial data, revenue rose by 20% year-on-year to QAR 2.3 billion ($633.1 million), compared to QAR 1.9 billion ($529.1 million) in H1 2024. This growth was fueled by a 37% increase in sales volumes, reaching around 1.3 million tons, supported by stronger trade in Direct Reduced Iron/Hot Briquetted Iron (DRI/HBI). The rise was partially offset by a 13% drop in the average selling price to $475 per ton. The sales mix changed notably, with the Middle East accounting for 59% of total revenue, compared to 44% in the same period last year. European markets contributed 10%, while the Indian subcontinent accounted for 5%. In contrast, Asia and Africa, which previously represented 21% and 7% of revenue, respectively, were absent from the company’s target markets this year. Domestic sales generated 26% of revenue, compared to 28% in 2024. On the production side, output surged by 21% to around 2.6 million tons, supported by the restart of the electric arc furnace earlier this year, enhancing the company’s cost competitiveness. Despite a roughly 1% improvement in gross and operating margins, driven by better cost efficiencies, net profit fell by 26% to QAR 265 million ($72.8 million), impacted by the absence of last year’s one-off gain from the reversal of a financial guarantee, as well as lower contributions from associates. The company noted that on a like-for-like basis, profitability remained stable and in line with historical averages.