United Wire Factories Co. (Aslak) reported a -16% on-year decline in revenue in 2017 to SAR 577 million ($153.9m) due to reduced demand for construction materials, the Saudi re-roller says.

The lower demand from the construction sector also dragged down Aslak’s net profit by -69% in 2017 to SAR 25.6m. Besides weak demand there was an increase in competition in Saudi’s construction steel market, Aslak says. Higher cost of goods sold also led to a decline in gross margins.

Riyadh-based United Wire can produce up to 110,000 tonnes/year of rebar, as well as 130,000 t/y of downstream products including wire, fences, nails and barbed wire.

Last July Saudi removed restrictions on rebar exports, allowing Saudi’s predominantly longs-producing mills to seek export business for the first time since 2008 (see Kallanish passim). This has brought some much-needed respite to persistently sluggish demand in the domestic market on account of reduced government spending on infrastructure projects.

According to worldsteel data, crude steel output at Saudi’s largest steelmaker, Hadeed, fell -10.6% on-year in January-November 2017 to 4.49mt.