Tel :
Tel :
The consolidation trend in the Gulf Cooperation Council (GCC) steel industry continues to gain momentum, with some idle capacity assets attracting the attention of potential buyers. X42R steel, Industry insiders revealed that steel mills from Oman and the UAE have become the focus of the market, and if the acquisitions are completed, the region's overall capacity is expected to increase further.
Currently, the two most discussed potential acquisition targets are an integrated steel and long products plant in Oman and a steel rolling mill in the UAE. It is understood that Oman has already begun preliminary discussions with its government, but the process may take longer; the UAE has not yet reached substantive negotiations.
It is understood that Oman's target asset is MISCO Steel, equipped with an annual production capacity of 1.2 million tons of continuously cast billets (CCM), of which 1.1 million tons can be rolled into rebar with specifications of 8–40 mm, and has the capacity to produce square billets of 130x130 mm or 150x150 mm in length of 12 meters. X42R steel, The plant started production in 2020, but was forced to shut down at the end of 2022 due to raw material supply problems.
Another asset is United Steel Industries (USI) in Fujairah, UAE, which owns a 1 million-ton-per-year rolling mill designed to produce rebar, but since its trial operation in 2019, it has primarily focused on 5.5–16 mm wire rod for applications such as wire drawing and steel mesh. Due to its reliance on CIS billet supplies, the supply of semi-finished products was disrupted after the outbreak of the Russia-Ukraine conflict, coupled with intense market competition, leading to the cessation of production at USI in 2022.
In fact, steel industry consolidation is not new in the GCC. The most typical example is the merger between Saudi Arabia's Rajhi Steel and Saudi Steel Company (Hadeed). X42R steel, The deal announced in September 2023 by the Saudi Public Investment Fund (PIF), SABIC, and Rajhi Invest was considered a significant milestone in the "Vision 2030" industrial transformation. As industry consolidation continues, the future of idle assets in Oman and the UAE will become another key variable to watch in the Gulf steel industry.
