During the 19th Middle East Iron and Steel Conference organized by MetalBulletin, Saeed Al-Romaithi, CEO of UAE-based steel producer Emirates Steel, said that the main problems of the steel industry are the oversupply both in steel and iron ore production and excessive export volumes which have reduced prices to the levels seen in 2004.
According to Mr. Al-Romaithi, in the Arabian Peninsula finished steel output increased by 12 percent in the last two years and is expected to rise by a further 18 percent by 2018. He also stated that the construction industry is the main steel-user industry in the region, with 50 percent of the steel used being imported, while local producers’ capacity utilization rates stand below 40 percent.
The Emirates Steel CEO said that the steel industry is in a difficult situation in the Arabian peninsula, and so, apart from safeguard measures, there is a need for a strong union that will unite industry representatives.