Page 18 - Altogether Magazine Issue 5 English
P. 18
Investment-oriented downstream industries increased
by 22% during the period between 2008 and 2012,
according to statements released by Department of
Industrial Information at Gulf organization for Industrial
consulting, the number of downstream industry plants
increased more than 5% in the Gulf countries through
the same period.
Qatar’s industrial sector possesses both government
and private investment importance and focus and is
considered as one of the most important strategic
sectors for both development and sustainability, as
the success of this sector has the potential to create
diversified income sources and achieve additional
economic values. In this context the industrial sector
companies listed in DSM achieved an annual profit of QR
12.11 billion at the end of 2013 compared to the QR 11.88
billion at the end of 2012 – an increase of 1.9%, while
the petrochemical sector achieved profits of 5.4 billion
riyals increased 12.3% compared to its level in 2012. This
comes as a result of the improvement in the operating
efficiency and development of the production capabilities
of the companies in light of the continuing support for
expansion plans.
The downstream industries sector is a key driver of these the next five years, CRU projections indicate a decrease
recorded growth rates and the building and construction of price levels during 2014, compared to the rates
and facilities and services sector are expected to achieve prevailing in 2013, projecting an average of 1877
strong growth rates during the current period as well as dollars per ton.
over the next few years, In this context the evolution in The instability and continued volatility in the prices
Qatar of the aluminium industry forms one of the most of metals circulated at the London Stock Exchange,
important supporting factor in the industrial sector, is creating further pressures and challenges for the
where Qatalum produces about 630 thousand metric investments directed at the aluminium industry as
tons of high quality aluminium annually, which enters well as other industries.
as raw materials for many industries, particularly the This makes the planning process complex and subject
automotive industry, construction and engineering to high levels of uncertainty in the ability of these
industries, manufacturing consumable products investments to generate returns and revenues on the
and other main industries. one hand and to maintain investment asset values and
According to CRU, the aluminium markets are facing a to continue for extended periods of time on the other.
range of factors both supporting and placing pressure Aluminium prices did not take a clear path in their ups
on the world’s aluminium industry. The most pressing and downs during 2013, with a ton of aluminium was
of these in the current period is the continuing decline trading at a level of 2079 dollars at the beginning of
in the prices of up to 1714 dollars per ton at the London February 2013 only to fall down again and settle at 1804
Stock Exchange for metals – the lowest level in the last dollars per ton in middle of April. The price of aluminium
four years, although the industry is experiencing an rose slightly in May, up to 1828 dollars per ton to be
increase in the stock market. In contrast, the CRU believes followed by a slight decline in mid-August to reach 1821
that the continuing growth of consumption in the world dollars per ton. In the first third of September aluminium
with the support of the growth and recovery indicators prices stabilised at the London Stock Exchange for Metals
achieved by the advanced economies in Europe and at 1781 dollars to go down again in November to 1761
North America should bolster the aluminium industry. dollars. It further decrease to 1718 dollars per ton at the
The growth in global consumption in 2014 is estimated end of December and aluminium’s journey downward
to increased by 3%, if China is exclude from the equation. continued 1674.5 dollars per ton in early March 2014.
The market indicators show that the transport sector
will be the number one developer for the growth of the
global consumption of aluminium in the current year, in
addition to the increase in the demand that comes from
the construction sector in the emerging and developed
markets. Taking into account the rising growth rates
in the consumption of aluminium in the automotive
industry of the American and European markets over
18
by 22% during the period between 2008 and 2012,
according to statements released by Department of
Industrial Information at Gulf organization for Industrial
consulting, the number of downstream industry plants
increased more than 5% in the Gulf countries through
the same period.
Qatar’s industrial sector possesses both government
and private investment importance and focus and is
considered as one of the most important strategic
sectors for both development and sustainability, as
the success of this sector has the potential to create
diversified income sources and achieve additional
economic values. In this context the industrial sector
companies listed in DSM achieved an annual profit of QR
12.11 billion at the end of 2013 compared to the QR 11.88
billion at the end of 2012 – an increase of 1.9%, while
the petrochemical sector achieved profits of 5.4 billion
riyals increased 12.3% compared to its level in 2012. This
comes as a result of the improvement in the operating
efficiency and development of the production capabilities
of the companies in light of the continuing support for
expansion plans.
The downstream industries sector is a key driver of these the next five years, CRU projections indicate a decrease
recorded growth rates and the building and construction of price levels during 2014, compared to the rates
and facilities and services sector are expected to achieve prevailing in 2013, projecting an average of 1877
strong growth rates during the current period as well as dollars per ton.
over the next few years, In this context the evolution in The instability and continued volatility in the prices
Qatar of the aluminium industry forms one of the most of metals circulated at the London Stock Exchange,
important supporting factor in the industrial sector, is creating further pressures and challenges for the
where Qatalum produces about 630 thousand metric investments directed at the aluminium industry as
tons of high quality aluminium annually, which enters well as other industries.
as raw materials for many industries, particularly the This makes the planning process complex and subject
automotive industry, construction and engineering to high levels of uncertainty in the ability of these
industries, manufacturing consumable products investments to generate returns and revenues on the
and other main industries. one hand and to maintain investment asset values and
According to CRU, the aluminium markets are facing a to continue for extended periods of time on the other.
range of factors both supporting and placing pressure Aluminium prices did not take a clear path in their ups
on the world’s aluminium industry. The most pressing and downs during 2013, with a ton of aluminium was
of these in the current period is the continuing decline trading at a level of 2079 dollars at the beginning of
in the prices of up to 1714 dollars per ton at the London February 2013 only to fall down again and settle at 1804
Stock Exchange for metals – the lowest level in the last dollars per ton in middle of April. The price of aluminium
four years, although the industry is experiencing an rose slightly in May, up to 1828 dollars per ton to be
increase in the stock market. In contrast, the CRU believes followed by a slight decline in mid-August to reach 1821
that the continuing growth of consumption in the world dollars per ton. In the first third of September aluminium
with the support of the growth and recovery indicators prices stabilised at the London Stock Exchange for Metals
achieved by the advanced economies in Europe and at 1781 dollars to go down again in November to 1761
North America should bolster the aluminium industry. dollars. It further decrease to 1718 dollars per ton at the
The growth in global consumption in 2014 is estimated end of December and aluminium’s journey downward
to increased by 3%, if China is exclude from the equation. continued 1674.5 dollars per ton in early March 2014.
The market indicators show that the transport sector
will be the number one developer for the growth of the
global consumption of aluminium in the current year, in
addition to the increase in the demand that comes from
the construction sector in the emerging and developed
markets. Taking into account the rising growth rates
in the consumption of aluminium in the automotive
industry of the American and European markets over
18
