According to a report in the Saudi daily Al Riyadh, some owners of Saudi contracting companies are exerting pressures on the Trade Ministry not to resume the export of steel, cement and other building materials.

Steel and cement companies believe, however that the Saudi market might soon witness over supply of building materials and a 30% surplus which is expected to reach 50% by the end of the year. The ban was imposed in the second quarter of 2008.

Mr Mehdi Al Qahtani executive Chairman of Al Rajhi steel Industries criticized press reports of a steel crisis saying that the far from reality statements are released by some owners of contracting companies who want to keep prices of steel, cement and other building materials down even if it was at the expense of local producers.

He said the Saudi steel industry is in urgent need for state support to be able to continue, adding that the sector is suffering losses.

(Sourced from Emirates Business)