Russian, Indian firms dumping steel products in Saudi market: SABIC |
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The Saudi Hadeed Company, an affiliate of the Saudi company, SABIC, has accused Russian and Indian companies involved in manufacturing steel sheets of dumping their products on the Saudi market. In
a petition it submitted to authorities in the Kingdom, Hadeed demanded the
imposition of a 20 percent customs fees on the Russian and the Indian
imports. One
of the demands made by Hadeed, one of the largest producers of steel sheets
in the Gulf Region, with a production capacity of 850,000 tons annually, is
that this protective tariff should be calculated on the basis of the
difference between the price of the product at the point of origin and the
dumping price in the Gulf Region. Due
to the new-dumping law being studied by authorities in the Kingdom,
immediate action is expected to be taken against the Russian and Indian
companies. A
business source in the Kingdom said the dumping operations by companies in
these two countries has led to a collapse of prices by more than 60
percent, and constitutes a real threat to local industry in the Kingdom. The
result of the latest survey conducted by the company showed that Hadeed is
selling its products at less than half their actual cost because of the
unfair competition. A
source described this competition as an attempt to break the local
industry. The share of the Russian product in the Saudi market is estimated
at 35 to 40 percent, and the Indian product at 15 percent. Saudi industrialists involved in the field asked the authorities to issue a Saudi specification for sheet in order to curb the importation of inferior-quality products. |
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(source: RIYADH Al-WATAN, 19/06/2001) |
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