Tuesday, 21 July 2009 at 10:56, Reuters
Saudi Basic Industries Corp (SABIC) is in negotiations with the government to obtain a license to export steel, its vice president as saying on Tuesday.
The government this month lifted a ban imposed on steel exports last year after prices rocketed due to increased local demand amid multi-billion dollar infrastructure projects.
Companies are now allowed to export a percentage of their surplus provided they maintain at least 10 per cent of their production on reserve for the local market.
"The company's pursuit of an export license from the Ministry of Commerce and Industry does not mean that it will export steel in this current period," SABIC's Mutlaq al-Morshed told Al-Watan newspaper. "As long as demand is high then there is no need to export."
"When demand becomes less then the supply in the market, then it is only natural that we export some of the steel supply that we have," al-Morshed said.
Your comments