Aluminium products demand in Oman is going to stay strong, industry experts who congregated at the recently ended Arab International Aluminium Conference (ARABAL) 2017 expressed their confidence putting at rest fears of weakening demand from the country’s construction sector. The GCC construction sector is the largest consumer of domestically produced aluminium extrusions. Yet, aluminium bar rods and profiles import by Oman has been rising on per year basis. The trend is expected to continue over the medium term.
According to available export-import data, Oman imported 22150.5 tonnes of aluminium bar rods and profiles in 2016. The figure represented a drop from the previous year’s import volume when it reached 25827 tonnes. In 2017, the aluminium bar rods and profiles import is again expected to rise reaching 24068.5 tonnes by December end. The value of import is estimated to reach US$73.5 million.
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The Gulf construction sector witnessed sluggishness in activities due to lower oil prices in the past few years which raised concerns about demand for industrial metals such as aluminium. However, industry players from the whole of Middle East and North Africa region believe that this down phase is now over, and aluminium extrusions demand will pick up supported by increased activities in the construction sector.
'We have all the components, we have the government support, and what we need now is to do some research and development to look for new industries where aluminium could be used,' said Ihab Mouallem, CEO of National Aluminium Products Co.
Architectural, building and construction applications account for over 80 per cent of the aluminium extrusions market in the MEA region. Demand for aluminium bar rods and profiles, aluminium composite panels, and fire-rated aluminium composite materials are always on the rise opening up newer avenues for the downstream companies to leverage on the growth.
Sohar Aluminium, the organizing company for this year’s ARABAL, earmarks 60 per cent of its production for consumption by the local downstream industries. Shar intends to increase this volume further to increase the overall in-country value.
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