DUBAI: The UAE’s steel manufacturers have banded together under a new platform — “Magnet” — to press their case against the easy import of cheap value-added items into the country. This, they believe, has long-term consequences for the domestic industry. In particular, the new grouping wants the authorities to consider imposing higher duties on steel imports than the 5 per cent (including port handling and logistics) in place now. In fact, it was only recently that even the 5 per cent was effected — earlier shipments could avail of a 0 per cent duty structure.
The UAE’s current installed capacity for value-added steel products is 5.4 million tones, of which around 4 million tones is actually produced. Even then, this is “more than sufficient to meet current demands of the country needing 3.5-4 million tones annually,” according to a statement from Magnet.
The grouping currently lists Emirates Steel, Conares, Hamriyah Steel and Union Iron & Steel among its members. “All local manufacturers have approached the ministry (of economy) to introduce further protective measures to support manufacturing in the Emirates,” said an industry source. “We as local manufacturers can raise our concerns with the local authorities, whereby the authorities support manufacturers and traders by balancing the tariffs.”
