150 million tons of global surplus… and a committee to create an energy database
The participants in the Arab Steel Summit, which was held in the Jordanian capital, Amman, warned of the protection risks imposed by some major countries on iron imports.
They stressed during the activities of the second day of the summit that Arab manufacturers have an opportunity to be present in the global iron markets as a major player, provided that joint mechanisms are found to ensure integration among all and not competition with the support and support of the iron industry in each country.
George Matti, Head of Marketing at Ezz Steel Group, said during his speech at the summit yesterday that the transformations taking place in the global market represent a direct threat to the Arab steel industry, as the markets are witnessing huge production surpluses during the past few months, after the protection measures taken by the American countries. Europe, Turkey, and others.
He added that international protection measures in the steel industry spread after America imposed protectionist duties on imports of 25% on the pretext of protecting American national security, which prompted the European Union countries to impose similar fees, and then a country like Turkey imposed duties of 25%, and explained that This trend has led to the closing of the main markets to imports, which leads to the transformation of the global trade course to the open markets in the countries of the Middle East and North Africa with little protection.
Matthew revealed that estimates indicate that the surplus of global production as a result of these fees is estimated at 150 million tons of steel products, which amounts to major risks for the countries of the region if they start diverting their course, especially in light of a huge global surplus looking for markets to absorb it. He explained that America alone was importing 35 million tons of steel products, and Turkey was importing 11 million tons, while the European Union was importing 17 million tons annually, which means that these quantities were unable to enter the markets of those countries after the imposed fees.
For his part, Gamal El-Garhy, Chairman of the Chamber of Metallurgical Industries in the Federation of Industries, said that the Egyptian factories are able to meet the needs of the local market for iron and steel products, explaining on the sidelines of the conference that the factories succeeded in providing all quantities for the national projects that are currently being implemented in Egypt. In the same context, the Arab Steel Union approved the establishment of an economic committee affiliated to it, headed by George Matti. The objectives of this committee are to form a detailed and continuously updated database on the steel market, and to submit a report twice a year to the union.