Posted on 14 Sep 2022
The executives of major Middle East and North Africa iron and steel producing companies conceded on Tuesday that exporting cannot be the solution for the region's low per capita steel consumption.
Ahmed Ezz, founder and chairman of Egypt's Ezz Steel, cited restrictive protectionism globally and suggested MENA countries should cooperate more in the development of local manufacturing industries to stimulate consumption. Per capita steel consumption in the region is far lower than in Southeast Asia or Turkey, for example, he said at the the Saudi International Iron & Steel Conference 2022 in Riyadh, for which Kallanish is programme partner.
According to Ezz, the region cannot rely on foreign direct investment as investors do not find MENA attractive.
Vinay Shroff, chief marketing officer of JSW, said: "Steel cannot be exported in the way it used to be." He added that there are too many trade measures in place on commodity steel. Producers are focusing on value addition to continue exports.
Ahmed Kalifa, chief manufacturing officer of Qatar Steel, meanwhile said the need to import raw materials reduces regional producers’ export competitiveness.
Edwin Basson, director general of worldsteel, cited the global shrinking of export trade and societal transformations stimulating different, more local solutions.
Nevertheless, Fahad Al Abdul Kareem, Saudi Aramco vice president of industrial services, told the audience that the firm’s prospective plate mill "will be for the whole world, not just Aramco”, echoing Shroff's sentiment about value addition for exports.
Source:Kallanish
