Jordan Steel profit plunges 65pc
Amman, July 29, 2010
Jordan's top steel producer Jordan Steel posted a 65 per cent drop in first-half net profit to JD2 million ($2.8 million), financial statements released on Thursday showed.
For the second quarter, Jordan Steel posted a loss of JD462,882 ($652,866) compared with a JD3 million profit a year before, the statement obtained by Reuters showed.
Industry analysts say a depressed real estate sector and weak steel prices, along with dumping of cheaper UAE imports, were to blame for the sharp drop in profitability of the kingdom's largest steel producer, with a market share of at least 30 per cent.
The firm's major export market is Saudi Arabia.
Jordan Steel expects to finish an expansion plan by the end of the year that will raise its production capacity to 360,000 tonnes annually from 240,000 tonnes. – Reuters