RIYADH, 25 August — Saudi authorities have denied entry to a number of foreign steel consignments at the ports to prevent dumping and protect national industries, an informed source told Arab News.
"Quality control labs of the Commerce Ministry have intensified inspection of steel imports. The move is important to prevent dumping that hurts national industries," the source said.
Saudi Arabian Basic Industries Corporation (SABIC) has estimated the losses suffered by iron and steel companies in the Kingdom at about SR700 million ($186.6 million) last year as a result of dumping.
SABIC was successful in convincing the government to raise customs tariff on flat steel from five to 12 percent to prevent dumping.
Many countries export large quantities of iron and steel products to Saudi Arabia and other Gulf countries at low prices, adversely affecting business of Gulf industries. Foreign firms supply flat steel products for $160 per ton.
Saudi steel industries also face problems like high cost of production as a result of a hike in electricity tariff.
Turkey exports about 1.7 million tons of iron to Gulf markets at prices lower than in Turkey and Europe. Gulf countries consume about 3.5 million tons of reinforcement iron for building purposes.
Gulf steel industries produce a total of 4.5 million tons. Turkish exports have changed the condition of Gulf industries from bad to worse.
