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There are reports in the industry that the imported steel is being dumped into the UAE by the Turkish exporters. The local steel producers are asking for the government to take some protection measures as they want to gain their market share.
The officials of the government owned Emirates Iron and Steel Factory (EISF) emphasize that the steel imports from Turkey have surged since the last two months, with Turkish exporters pushing the local traders to accept huge quantities. As the UAE is a free market and does not have anti-dumping protection like the other Gulf Cooperation Council (GCC) countries do, it is reported that Turkish exporters have dumped around 400'000 mts of steel in the last two months.
Together with the low import duties with no anti-dumping protection, the very strong demand for steel from the construction sector in the UAE attracts the attention of foreign producers. Qatar is also a country reported to be dumping in the UAE.
The steel consumed in the UAE market last year was 1.2 million mts. A 1.3 million mts of consumption is foreseen to be consumed this year. However, in order to overcome the current overcapacity problem, the traders have stopped placing new orders, until the stock levels are decreased.
The annual production capacity of the EISF is 500'000 mts and the year-end target of production is 390'000 mts. The company supplies its entire production to the local market. This shows that there is room for steel imports in the UAE, looking at the demand. The local producers say that as there is demand in their market and they are not against steel imports but as long as they are fairly priced and meet the required standards.