Dubai-based metal trading, pipe and rebar producing company Conares Metal Supply's director Mathew Ambat lately spoke to SteelOrbis concerning his company's current facilities, while he also shared his views on the current market situation.
Can you tell us about your current facilities and trading activities?
Our current facilities are located in the Jebel Ali Free Zone, Dubai, UAE. Overall, we hold about 1.5 million square feet in the free zone. About 500,000 square feet is being utilized for our tube plant operation. And about 1 million square feet has been allocated for the rolling mill operations.
The tube mill operations have an installed capacity of 180,000 tons per year, producing sizes from ½"-4" in circular, square and rectangular shapes, complying with BS, ASTM, CSA and JIS standards. The facility is also being upgraded to process Grade B and C quality pipes and a new galvanizing line for galvanizing pipes is being installed.
The rolling mill plant has an installed capacity of 500,000 tons of rebar per year, with a product range of 8-32 mm diameter and up to 18 meters in length.
The company is also involved in international steel trading, which was its traditional line of business, but in recent years it has geared itself into manufacturing. It continues to trade in various steel items which are not directly produced by the company. This covers steel items ranging from billets, angles, channels, beams, all the way to hot rolled coils/sheets, cold rolled coils/sheets, galvanized and pre-painted galvanized coils, etc.
Are you considering any production cuts in view of the market situation today?
On the contrary, the rolling mill is a new mill that is expected to enter production by the end of the third quarter of 2010.
Which are the main markets you supply?
We intend to be a regional player and to be able to supply to emerging markets which will allow us to maximize the potential of our production facility.
Can you compare the demand potential of the markets on a regional basis as per today's conditions?
I believe that the recent SteelOrbis and IREPAS conference discussions will have answered this. But to sum it up, I guess the best way of putting it is that there will always be pockets of market potential at any given time. However, due to the recent market trends, these pockets of potential are very scarce at the moment.
It is possible to compare potential demand as per region, but the market situation changes so fast and the market conditions are so volatile that demand can shift even before a reliable and comprehensive market analysis or report can be made.
Can you give a brief info about your parent company? Are they involved in raw materials?
Conares Metal Supply Ltd.'s primary operations are based in Dubai. This is our head office.
What do you think about current billet/rebar and coil/pipes costs and margins in view of today's market conditions and what are your expectations for the rest of the year?
In our view, the situation as regards margins is critical at the current time and we expect the rest of the year to be more difficult than last year.