Sonasid Firms Warn of Drop in Profits
Sonasid, a steel manufacturing company, revealed its net profits will see a 39 percent decline in 2019 compared to 2018 due to several factors, including the rise in the cost of production material and the drop in the prices of products globally due to high competition resulting from the trade war.
In a statement, Sonasid indicated that last year witnessed a rise in the prices of production input of steel manufacturing especially cathodes. The Moroccan market is undergoing a relapse in demand amid a surplus in production capabilities, noted the firm.
As for export markets, Sonasid clarified that it has suffered from the repercussions of the US-China trade war. It added that multiple markets took protective measures similar to the US, which increased customs duties 25 percent.
Such measures have increased competition on unprotected markets, and consequently dropped product prices.