The cost of steel production may go up by 7% due to increased electricity costs, a Saudi Arabian company has warned.

Mutlaq Al-Murished, vice president finance of Saudi Basic Industries Corp.

(Sabic) said new power tariffs from the Saudi Electricity Company (SEC) could lead to the price increase.

He was speaking as the company announced Q2 profits up 177% from a year ago to SR5.02 billion as new output came on stream.

Last year, Sabic’s Saudi Iron and Steel Company (Hadeed) produced 4.776Mt of steel. Hadeed manufactures both long and flat steel products. It covers about 62% of the Kingdom’s steel demand.

Source: ‘Arab News’, Riyadh