08 December 2009
Saudi steel exports are estimated to have declined 17.3 per cent to 1.35 million tonnes in 2008, and are forecast to further decrease by 22.2 per cent in 2009. This was revealed in a study conducted by Saudi National Commercial Bank (NCB).
"We believe the kingdom's iron and steel sector will continue to operate in a relatively protected business environment because the country's supportive regulatory regime along side cheap energy cost and protective tariffs, ensure local industry will continue to maintain a competitive edge over foreign producers," said the study.
In 2008 the worldwide production of steel exceeded 1.32 trillion tonnes, making it the largest manufacturing industry in the world with a turnover of more than $1.5 trillion (Dh5.50trn).
The 2009 YTD worldwide steel production has reached over 865 million tonnes, with Saudi Arabia producing only 0.5 per cent of the worldwide production.
Hadeed, the largest local producer of steel, contributed 53.5 per cent of the total domestic supply in 2008, while the rest was catered for by the leading private sector producers such as Al-Tuwairqi Group and Al-Rajhi Steel.
Saudi steel exports are estimated to have declined 17.3 per cent to 1.35 million tonnes in 2008, and are forecast to further decrease by 22.2 per cent in 2009. This was revealed in a study conducted by Saudi National Commercial Bank (NCB).
"We believe the kingdom's iron and steel sector will continue to operate in a relatively protected business environment because the country's supportive regulatory regime along side cheap energy cost and protective tariffs, ensure local industry will continue to maintain a competitive edge over foreign producers," said the study.
In 2008 the worldwide production of steel exceeded 1.32 trillion tonnes, making it the largest manufacturing industry in the world with a turnover of more than $1.5 trillion (Dh5.50trn).
The 2009 YTD worldwide steel production has reached over 865 million tonnes, with Saudi Arabia producing only 0.5 per cent of the worldwide production.
Hadeed, the largest local producer of steel, contributed 53.5 per cent of the total domestic supply in 2008, while the rest was catered for by the leading private sector producers such as Al-Tuwairqi Group and Al-Rajhi Steel.
By Nadim Kawach
© Emirates Business 24/7 2009
