Arab union considers protecting steel industry

Updated 05 December 2014
0

Arab union considers protecting steel industry

The Arab Iron and Steel Union board of directors met in Dubai recently, in the presence of its members representing the iron and steel industry in Saudi Arabia, the UAE, Egypt, Qatar, Jordan, Algeria and Bahrain.
The participants discussed several subjects on top of which is the unjustified sudden increase in imports to the Arab region, whether from reinforced steel or flat steel products, in very low prices, causing severe damages to the national industry in the concerned Arab countries.
They warned of the destructive effect, particularly of the Chinese imports entering the region in prices much less than the international and local prices, thus threatening the Arab companies whose local markets are exposed to severe dumping, affecting its production volume and profits as well, which in turn damages the large investments in current and future steel industry projects.
The huge production surplus in China instigated several countries, including Canada and America, to impose dumping fees of around 110 percent. While Turkey increased its customs fees on reinforced steel from 15-30 percent to 30-40 percent, some European countries also imposed 13-45 percent customs protection fees on the Chinese flats steel products.
Since the Chinese production of reinforced steel and flat steel sweeps global markets, the Arab Iron and Steel Union warned the Arab governments that the lack of influential customs protection in most of the region’s countries will lead to escalation of the problem.
The union also called on the governments to review the customs fees on imports, and raise it to the level that could stave off the threat of cheap imports, and to put into effect the measures that would ensure compliance of imported iron with the standard specifications that guarantee quality product along the lines of the local product.


Moody’s downgrades Nissan’s credit rating, citing weak sales in US

Updated 1 min 25 sec ago
0

Moody’s downgrades Nissan’s credit rating, citing weak sales in US

  • Nissan reported a 45 percent plunge in annual operating profit in the year ending March
  • Moody’s cut its rating of Nissan’s credit to ‘A3’ from ‘A2’

TOKYO: Moody’s cut its rating on Nissan by one notch on Friday, citing weak sales in the United States and casting a shadow on the Japanese automaker’s move to improve its business following a decline in its annual profit.
Nissan — hit by former Chairman Carlos Ghosn’s arrest last year and troubles at its North American business — reported a 45 percent plunge in annual operating profit in the year ending March, and forecast a 28 percent drop in profit this fiscal year.
Moody’s cut its rating of Nissan’s credit to “A3” from “A2,” adding that the outlook was negative.
“The downgrade reflects the continuing slide in Nissan’s profitability, driven by weak sales in the US, its largest market,” Moody’s Vice President Motoki Yanase said in a statement.
While Nissan’s new strategy focuses on margin over unit sales growth and refreshing old models to improve its brand value, the ratings agency expects the overhaul will take “several years.”
“The negative outlook on Nissan reflects execution risk as Nissan implements its business strategies globally, reforms its corporate governance and stabilizes its alliance with Renault,” it said.
France’s Renault is the top shareholder in Nissan.