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FINANCIAL NEWS
Demand on steel drops in KSA
26 Aug 2013
(MENAFN) The campaign in Saudi Arabia to correct workers status have lead to plunging demand on steel, Arab News reported.
Demand on steel fell by 50 percent in the Kingdom following thousands of workers leaving the country where huge projects are underway.
Demand on steel will be weak next year when the rectifying period ends. Many factories are planning to increase production.
Construction contracts for May dropped to USD2.6 billion with residential and transportation projects in the lead. In June, contracts rose to USD5.5 billion with the lead being held by multipurpose real estate and roads.
Regardless of the increasing number of projects, steel prices were unaffected for three years due to competitive environment and no monopolizing in the sector.
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