UAE producers suggest regulation to be implemented on steel trade
Market sources report that, United Arab Emirates (
UAE) steel industry is looking for a solution to end problems concerning steel trade. One of the solutions put forward is implementation of government-led regulation for steel trade.
The producers in
UAE express that they suffer from lack of stable steel prices and dumping for their exports to overseas countries. Regarding the subject, traders state that maintenance of stability in steel prices in
UAE is impossible, however export problem, especially into
Turkey, is more likely to be solved.
To bring the problems regarding steel trade to an end,
UAE steel producers suggest establishment of a body that will represent the government and regulate steel trade and the body will be supervised by Ministry of Economy and Finance.
The
UAE market consumed 1.2 million metric tons of steel in 2002 and this figure is expected to reach 1.4 million metric tons this year. The oversupply in
UAE market is attributed to strong demand in steel market.
Meanwhile, some sources state that establishment of a body with government and traders is difficult in
UAE, as the market is open and different margins are operated in the market.