UAE-based steel producer Conares has announced that it has participated in a meeting with other mainstream UAE-based steel manufacturers, including Emirates Steel Industry (ESI), Hamriyah Steel and Union Iron & Steel, with a representative from the Ministry of Economy as an observer, to discuss the key issues in the local steel market such as rebar imports, market trends, product costing and promotion of local products.
During the meeting, the local steel producers highlighted that, despite the strict implementation of customs duty of five percent on imports of steel rebar and wire rod, there has been an upsurge of rebar imports arriving in the Emirates from non-GCC countries.
“All steel manufacturers in the UAE are facing the challenge of the inflow of cheap steel in the local market imported from Turkey, albeit the domestic steel mills have sufficient capacity to support the new wave of infrastructure developments planned up to 2020. If the traders only consider buying from local producers, prices can be kept competitive,” said Mohammed Salem Al Afari, vice president (marketing) of Emirates Steel Industry.
According to Conares’ statement, speaking after the meeting the Ministry of Economy representative emphasized that several decisions were taken by the government with the view to encouraging the use of local steel products and reflecting strong support for promotion of the industrial sector, which will eventually contribute to the growth of the UAE economy.