UAE-based steelmaker Emirates Steel has warned of the damaging effects of the flow of Chinese and Turkish steel to the UAE markets, and called for protective actions to face the increasing competition and falling prices that will affect the UAE's future industrial development plans.
"The steel industry plays a crucial role in the UAE's industrial development plans and therefore should be protected against unfair trade practices," said HE Saeed Ghumran Al Romaithi, Emirates Steel's chief executive officer.
Mr. Al Romaithi warned that the inflow of Chinese and Turkish steel imports into the UAE, at prices below an acceptable market value, negatively impact the production volumes and profitability of UAE steel players, thereby causing damage to both existing and future steel expansion and investment projects and threatening the UAE steel sector. The Emirates Steel official added that the lack of strong customs protection in the UAE will lead to the escalation of the problem. "If proper measures are not adopted, many producers in the UAE would be at risk of losing capacity, putting the country at risk of losing impetus in diversifying its economy away from dependence on oil as a major source of income," he stressed
Besides the introduction of antidumping duties, Al Romaithi also recommended that a uniform standard should be introduced to fend off low-quality Chinese imports and force Chinese exporters of steel into the UAE to comply.
According to Emirates Steel, Chinese exports to the UAE rose by 63 percent in 2014 compared to 2013 and the same increase was estimated for the GCC region and the whole Arab region for the same period, while Chinese billet exports to the UAE increased by almost 300 percent in 2014 compared to the previous year, and by nearly 112 percent for wire rod. In January this year, Chinese exports to the UAE increased by 186 percent compared to January 2014. Turkish exports to the UAE for rebar grew by 28 percent to 1.33 million mt in 2014 compared to 2013. A significant growth of around 88 percent in Turkish rebar exports to the UAE was seen in January 2015 compared to January 2014.