Wednesday, 7 October 2009 at 08:40, Reuters, Dubai
The UAE's Al Ghurair Iron & Steel is sending a formal request to the government seeking protection from steel dumping, a company executive said on Tuesday.
Global demand steel slumped with the economic slowdown, leaving inventories swollen and sellers struggling to find markets.
"The excess supply from India and China is being dumped in the UAE market and is hurting our prices," said Abu Bucker Husain, chief executive officer of Al Ghurair Iron & Steel.
"We are in the process of writing a formal request to the ministry of economy asking for protection," he said on the sidelines of Meed steel confrence in Dubai.
The company is looking to have as many local companies sign the request and so far Jezeera Steel as agreed to it, said Husain.
"It's just a question of survival and we can no longer afford to have our hand tied and be thrown into the boxing ring without being able to fight back," he added.
Al Ghurair produces around 200,000 tonnes of galvanised steel per year, of which they sell at around $800 per tonnes, said Husain.
"This year traders from China and India were selling at around $650 per tonne all because they see the UAE as a good ground for dumping and is unprotected."
Some doubted the government could help.
"Having a free market and offering protection to steel makers sound very unrealistic to me," said Ajaj Aggarwal, chief exectuvie officer of RAK Steel. "I don't think it would be possible," he added.
In April Sultan bin Saeed Al Mansouri, UAE's minister of economy expressed his concern about steel dumping and its potential of hurting local prices.
Concerns about protectionism globally are rising as the impact of the financial crisis spreads, trade flows fall and governments consider measures to help firms survive the downturn.
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