According to MEsteel, the Indian-based company Jindal Steel has signed an investment agreement with Sohar Industrial City in Oman to develop an integrated steel project. The estimated investment volume is 150 million Omani rials, or approximately $390 million. The agreement was concluded with the participation of the Madayn Public Establishment for Industrial Estates, and the project is seen as part of strengthening the country's industrial base and export potential. For the market, this signals a further build-up of Oman's metallurgical presence in the Persian Gulf region.
Details of the Project and Jindal's Production Base in Oman
The new integrated asset is expected to bolster local steel supplies for the construction, infrastructure, and manufacturing sectors. Market experts link this agreement to Jindal Steel Oman’s recent acquisition of Moon Iron & Steel (MISCO) in Sohar. According to market sources, this step could serve as the foundation for restarting or modernizing existing metallurgical capacities.
MISCO suspended steel production in 2023 due to operational and financial challenges. However, the facility has a significant industrial footprint: the plant's production capacity for steel and rolled metal is estimated at approximately 1.2 million tons per year. For Jindal, this represents an opportunity for accelerated growth by leveraging already established infrastructure. Such an approach reduces project implementation timelines compared to greenfield construction.
Jindal Group already holds strong positions in Oman and the GCC countries. The company operates Jindal Pelletizing LLC in Sohar with an annual pellet production capacity of 6 million tons. Additionally, Jindal Steel Duqm (also known as Vulcan Green Steel) is developing a green steel complex with a capacity of 5 million tons per year in the Duqm Special Economic Zone, with a launch expected in the first quarter of 2027. Collectively, this forms a massive metallurgical cluster in Oman focusing on both domestic and export markets.
Impact on the Steel Market and Practical Insights for Metal Buyers
Jindal Steel's investments fit into Oman's broader strategy of industrial diversification. In April, the country's Special Economic Zones and Free Zones Authority (Opaz) signed a package of investment deals worth more than 200 million Omani rials, covering steel, building materials, EV batteries, and pharmaceuticals. This indicates that the country's steel sector is not developing in isolation but as part of a comprehensive industrial ecosystem.
For the global metal market, new and restored capacities in Oman mean intensified competition in Middle Eastern and adjacent export directions. This is particularly important for producers and traders of rolled metal working in construction, mechanical engineering, and infrastructure projects. The growth of regional supply may influence price benchmarks, contracting terms, and requirements for supplier logistical flexibility. For the Ukrainian market, this also serves as an indicator that the struggle for sales will continue to intensify.
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