The government of Saudi Arabia is likely to lift the ban on steel exports, according to Al-Tuwairqi Holding (ATH), Saudi largest private sector steel-maker. The ban on steel exports was imposed by the government last year in wake of the increased prices of steel
Tariq Barlas, Vice Chairman &CEO of ATH expressing his views at World Recycling Convention and Exhibition held recently in Dubai said, "Last year in April the government imposed a ban on scrap metals and finished steel products because prices increased from $650 to $1,300.The government wanted to protect local consumers because the price of manufacturing steel was very low in Saudi Arabia."
According to Tariq Barlas, the reason to lift the ban was that the country is looking forward to transform its image from an importing country of metals to an exporting one in global markets. When asked about the time duration to lift the ban, he said, "Currently, negotiations for reviewing the ban are taking place on a very high level and hopefully it will be lifted within 2 months" he added.
While giving an outlook on global steel industry, he said credit crunch and plunging oil prices were the main reason for the industry downfall. He said though 2009 would not be a profitable year but predicted brighter prospects in 2010 for the industry.
He said, "As of the last quarter of 2008, projects valuing at almost US $3 trillion were in the planning stage or under construction in the Gulf area. But with credit crunch taking hold and oil prices plunging, the last quarter of 2008 saw an unprecedented low. The brighter aspect is that markets now are responding positively. Due to various initiatives being announced and steps taken mostly by the G20 nations. The steel prices now are off the lows in the first quarter of 2009, though in terms of volume, 2009 would not be a good year but it is definitely expected to pick up in 2010."
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