Saudi Arabia mulls lifting bans on cement, steel exports – report

The Saudi government is considering lifting bans on cement and steel exports to help companies offload inventory and relieve oversupply in the local market, Al-Eqtisadiah daily reported on Sunday, citing customs department spokesman, Essa Al-Essa.

The move has become necessary after local production doubled, exceeding the storage capacity of the kingdom's largest companies, Al-Essa added.

Some steel producers had to halve production and shut down some smelters, as steel stock has exceeded 1.8 million tons, the newspaper added, citing the chairman of the National Committee for the Steel Industry, Shuail Al Ayed.

The oversupply caused by domestic over-production and growing imports has ranged between 12 percent and 15 percent, Al-Ayed added, urging the government to impose tariffs on steel imports.

Meanwhile, cement producers also urged the kingdom to ease restrictions on exports, especially as two firms were allowed to export at prices lower than those in the local market, Jihad Al-Rasheed, chairman of the national cement committee, told Al-Eqtisadiah.

Saudi Arabia’s cement output rose five percent year-on-year till August, bringing surplus up to 22.5 million tons, Al-Rasheed added.