Weak demand at home, lower prices abroad and higher stockpiles continue to pressure Saudi steel producers, whose move to cut prices has yielded nothing so far, reports the London-based Al-Sharq al-Awsat.
The country’s steel inventory continued its surge since the start of this year to a total of 1.6 million tonnes as the local construction market remains in the doldrums, leading to an additional 400,000 tonnes being sent to storage.
The local committee of steel companies urged concerned authorities to intervene and allow producers to export their surplus production. The committee said local steel is coming under strong competition from the cheaper Turkish and Ukrainian steel.
However, industry sources said local steel producers reaped the fruits of mega ventures the Saudi government carried out in the past few years.
They also said current housing projects and individuals seeking to build private homes would benefit from the current level of prices.
Source: AME Info
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