Saudi leads Arab countries’ steel production
Saudi ranks first in steel production among Arabs but suffers from lower price competition from China
Saudi Arabia has topped Arab countries in the production of steel with a 5.6million tonne capacity in 2015, Al-Riyadh reported.
The Kingdom secured the number one ranking despite steel plants in the region suffering significant challenges, including the issue of price dumping.
There is a temporary ban on steel exports coinciding with declining demand and rising costs, which has caused Saudi Arabian iron factories to suffer significant losses.
Some Saudi steel companies resorted to austerity measures in dealing with the crisis, including tough management decisions that put a halt to employee raises and annual bonuses - as well the dispensing of dozens of workers.
The Kingdom’s leading position among Arab countries in steel production was not enough for its factories to compete with Chinese manufacturers in terms of production, which flooded the Saudi market.
China is leading world production amounting to more than 803 million tonnes, a capacity far larger than Saudi production.
Egypt came in second place in Arab steel production capacity with 5.5million tonnes, while the UAE was third with 3million tonnes.