Saudi steel firms unable to compete with global producers: report

Saudi Arabia’s local steel producers are unable to compete with global producers due to the new taxes imposed on steel exports, Al-Yaum newspaper reported, citing Mohammed Al Jabr, head of Saudi Chambers Council’s steel unit.

The new fees should be canceled or delayed in order to give local producers more time to improve energy efficiency and control costs, Al Jabr suggested.

He said the industry continues to face a number of challenges, such as the lack of raw iron, poor-quality products, and high production costs after the kingdom increased energy prices in December 2015.

The Saudi government recently approved a new system to calculate fuel price differentials for steel and cement producers that export their products, Argaam earlier reported.

Steel export fees are estimated between SAR 58 and SAR 390 per ton, while cement export charges are estimated between SAR 85 and SAR 133 per ton.