Steel industry publications and government departments are warning of the economic risks associated with the “unprecedented” surge in domestic steel production.
Albawsi Steel Industry (ASI) publishes a second annual steel industry report this week.
Its aim is to provide a snapshot of the industry’s finances and future prospects.
ASI says it has been hit hard by a surge in demand from China, with an increase in output from China’s third-largest steel mill.
ASIs steel output has fallen by 10% since 2014.
ASi chairman Ali Alawardi told the BBC the boom has left the industry in a bad financial position.
“We’ve been in a slump since the beginning of this year, we have to look at the business plan for the next 12 months and we need to take the right decisions to get out of this slump,” he said.
“The world’s economy is changing and we are trying to adapt to that.
But there are plenty of opportunities in this industry.” “
There are still challenges ahead.
But there are plenty of opportunities in this industry.”
Albawedi Steel said it had recently been unable to find any new steel mills and would need to invest in new mills.
“As a result, we will continue to reduce our workforce to about 70 people by the end of this month,” Mr Alawadi said.
ASIns estimates of its steel output have fallen by up to 10% this year.
AS Ins chairman Ali al-Alawardi said the boom in demand for steel was causing an “unexpected” rise in production.
“This is the biggest steel boom in our history and we’ve been able to manage that because we have been able keep production levels in the same range as in the past,” he told the AP news agency.
“What we need is a real plan to stabilise our business and that’s what we are going to have to work with.”
ASIn s steel output fell by 10%.
Mr Alawsi said the industry was currently at “full capacity” but he admitted that the downturn in steel prices was slowing production.
He said that while the industry had continued to grow, production was down by 5% this past financial year.
Alawariby steel industry publication, The Business, said the downturn had caused a significant decline in demand.
“With the sharp increase in domestic demand for aluminium, we expect the overall output to continue to decrease this year,” it said.
Aluminium production fell by more than 15% in 2017, to 4,900 tonnes, the publication said.
The company has been criticised by the industry for a lack of transparency about its production.
It said it was now looking to sell its aluminium operations to Chinese companies.
The publication said ASI was now “working hard to build up a sustainable future”.
ASIn has been the victim of a series of industrial action by union members over the past decade, which have seen steel production hit by the downturn.
AS I s chairman Alawarradi said the union was now negotiating with ASI over a new contract.
“I hope this dispute can be resolved quickly and am looking forward to the work of ASI to build our future,” he added.
AS Is chairman Ali said the dispute was now over.
“It has been decided that we will move ahead with a contract agreement with AS I,” he wrote on Twitter.
The ASI dispute has been one of the major issues at the heart of the Tata Steel dispute, which began in September this year when ASI said it would be losing about $1.8bn.
The dispute has cost Tata Steel around $3.2bn and has been a source of tension between the two companies.
AS It has been unable, however, to find new sources of steel for its mills.
It has had to borrow to buy aluminium from Chinese companies and has said it will continue using the aluminium that was already in production when the Tata deal was agreed.