Latest news with #EmiratesSteel
Arabian Post
5 days ago
- Business
- Arabian Post
UAE Pushes for Trade Deal to Counteract U.S. Metal Tariffs
Arabian Post Staff -Dubai The United Arab Emirates and the United States are preparing to initiate negotiations for a potential bilateral trade agreement aimed at reducing or eliminating tariffs imposed during President Donald Trump's administration on UAE steel and aluminium exports. These tariffs include a baseline 10% duty and a specific 25% tariff on steel and aluminium—which the Trump administration plans to double to 50%. The UAE, whose steel and aluminium are significant non-oil exports and accounted for 8% of U.S. steel and aluminium consumption in 2024, is looking to leverage its history of swiftly concluded trade deals with nations such as India, Turkey, and Australia. While the U.S. may pursue a limited agreement rather than a full free trade pact, it is expected to be labeled a Comprehensive Economic Partnership Agreement , consistent with the UAE's past trade deals. ADVERTISEMENT The UAE, Washington's largest trade partner in the Middle East with $34.4 billion in bilateral trade in 2024, is also a major U.S. investor and security ally, hosting American troops and planning $1.4 trillion in future U.S. investments. Both sides reportedly responded positively to the idea during Trump's recent visit to Abu Dhabi, though a timeline for formal talks remains unclear. The Trump administration's decision to double tariffs on imported steel and aluminium to 50% took effect on June 4, 2025, impacting nearly all trading partners except the United Kingdom, which has a preliminary trade agreement with the U.S. The policy significantly affects major U.S. trading partners like Canada and Mexico, with Canada being the leading exporter of aluminium to the U.S. and both countries ranking high in steel exports. UAE-based steel producers expect to escape major impact from the latest move by the U.S. to double tariffs on steel imports. The new tariffs apply to all trading partners except the UK, which struck a preliminary trade agreement with the U.S. last month. However, steel manufacturers in the UAE don't anticipate a hard hit. The U.S. decision to double steel import tariffs 'may have an indirect effect on market dynamics but is not expected to materially impact Emsteel's business,' said Michael Rion, chief commercial officer at Emirates Steel, part of Abu Dhabi-listed Emsteel Group. The company has a 'modest exposure' to the U.S. market, with exports accounting for less than 2% of total annual sales. The UAE's push for a trade agreement with the U.S. is part of its broader strategy to mitigate the impact of increased tariffs and strengthen economic ties. The potential agreement, discussed during President Trump's visit to Abu Dhabi, seeks to address the challenges posed by the new tariffs and reinforce the economic partnership between the two nations.
The National
6 days ago
- Business
- The National
UAE steel producers don't expect major impact from Trump's doubling of import tariffs
UAE-based steel producers do not expect to see any major impact from the latest move by the US to double tariffs on steel imports. US President Donald Trump has raised import duties on steel and aluminum imports to 50 per cent, from 25 per cent previously, starting on Wednesday, the White House said. The new tariffs apply to all trading partners except the UK, which struck a preliminary trade agreement with the US last month. However, steel manufacturers in the UAE don't anticipate a hard hit. The US decision to double steel import tariffs "may have an indirect effect on market dynamics but is not expected to materially impact Emsteel's business", Michael Rion, chief commercial officer at Emirates Steel, part of Abu Dhabi listed Emsteel Group told The National. The company has a "modest exposure" to the US market, with exports accounting for less than 2 per cent of total annual sales, he said. "Given this proportion, the financial and operational impact of the new tariff regime is considered minimal. "Our current US business model is opportunistic and margin-driven, not volume-dependent." The company currently exports steel products to 70 markets around the globe. Meanwhile, UAE-based steel products manufacturer Conares said it is diversifying its export markets across Asia, Africa and Europe. "With the US potentially becoming less accessible, we foresee increased demand and strategic opportunities within the GCC and Mena regions," said Bharat Bhatia, founder and chief executive of Conares. The company is also "actively strengthening its domestic footprint to meet infrastructure and construction growth locally", he said. Conares has large steel plants in Jebel Ali Free Zone with an annual production capacity of 100,000 tonnes of steel products including rebars, pipes, and color-coated steel coils, strips and plates. The latest move comes as the Trump administration continues with its trade protectionist policy. 'Foreign nations have been flooding the US market with cheap steel and aluminium subsidised by their governments," the White House said on Tuesday. 'President Trump is taking action to end unfair trade practices and the global dumping of steel and aluminium." The White House said Mr Trump's tariffs in his first terms as President 'strengthened the US economy,' and 'led to significant reshoring' in industries like manufacturing and steel production. 'While the domestic steel industry briefly achieved 80 per cent capacity utilisation in 2021, subsequent trade pressure has depressed domestic production," it said. In 2022 and 2023, capacity utilisation fell to 77.3 per cent and 75.3 per cent, respectively, with high import volumes being a "major factor in depressing domestic production volumes". While Mr Trump announced sweeping tariffs across industries and nations two months back, Washington is currently holding talks to reach an agreement on lowering levies. On May 12, the White House announced that China and the US struck a deal to suspend their tariffs for 90 days. Washington and Beijing lowered their levies to 30 per cent and 10 per cent, respectively from an initial announcement of 145 per cent and 125 per cent in April.
Trade Arabia
21-05-2025
- Business
- Trade Arabia
Al Masaood Energy develops local third-generation solar tech
Al Masaood Energy is manufacturing third-generation solar technology in the UAE as part of its strategy to reduce carbon emissions in the oil and gas sector. Ibrahim Al Hashidi, Regional Manager of Renewable Energy Division at Al Masaood Energy, said during the 'Make it in the Emirates' that the technology was fully developed domestically, with 80 percent of components produced locally. Key suppliers include Emirates Steel and Tiger Steel, among others. In statements to the Emirates News Agency (WAM), he said that the system outperforms global competitors by up to 20 percent in efficiency, underscoring the success of the 'Make it in the Emirates' initiative in enabling advanced local manufacturing. A key advantage is the availability of industrial components in the UAE market. The support structures, made using I-beams, are manufactured by companies such as EG-Steel using steel from Emirates Steel. These capabilities enable the company to produce large-scale solar power stations that can compete globally, strengthening the UAE's position in renewable energy manufacturing.
Zawya
21-05-2025
- Business
- Zawya
Al Masaood Energy develops locally-made third-generation solar technology
ABU DHABI - Al Masaood Energy is manufacturing third-generation solar technology in the UAE as part of its strategy to reduce carbon emissions in the oil and gas sector. Ibrahim Al Hashidi, Regional Manager of Renewable Energy Division at Al Masaood Energy, said during the 'Make it in the Emirates' that the technology was fully developed domestically, with 80 percent of components produced locally. Key suppliers include Emirates Steel and Tiger Steel, among others. In statements to the Emirates News Agency (WAM), he said that the system outperforms global competitors by up to 20 percent in efficiency, underscoring the success of the 'Make it in the Emirates' initiative in enabling advanced local manufacturing. A key advantage is the availability of industrial components in the UAE market. The support structures, made using I-beams, are manufactured by companies such as EG-Steel using steel from Emirates Steel. These capabilities enable the company to produce large-scale solar power stations that can compete globally, strengthening the UAE's position in renewable energy manufacturing.
Gulf Business
16-05-2025
- Business
- Gulf Business
UAE's EMSTEEL reports Dhs2.2bn Q1 revenue, launches upgrade programme
Image: Supplied One of the largest publicly traded steel and building materials manufacturers in the region, The group's strong operational performance saw finished goods steel production rise 17 per cent and sales volumes increase 21 per cent YoY to 811,000 tonnes, buoyed by robust construction activity in the UAE and effective market positioning. In contrast to Q1 2024, when nearly 100,000 tonnes of billets were sold, all semi-finished products in Q1 2025 were converted into finished goods to meet customer demand. EMSTEEL divisional highlghts Sales volumes for Emirates Cement also grew 17 per cent YoY. Despite a 6 per cent drop in average steel prices and the absence of billet sales — which accounted for 10 per cent of Q1 2024 revenue — EMSTEEL posted Dhs266m in EBITDA, with an EBITDA margin of 12.3 per cent, compared to 13.7 per cent in the prior-year period. Profit before tax stood at Dhs94m, while net profit after tax was Dhs86m. The Emirates Steel division contributed Dhs1.96bn in revenue and Dhs226m in EBITDA. Emirates Cement generated Dhs205m in revenue and Dhs40m in EBITDA. Within the cement division, the Pipes & Other segment, currently under divestment and reported as Assets Held for Sale, contributed Dhs45m in revenue. As of March 31, EMSTEEL reported a strong liquidity position with Dhs881m in cash on hand, up from Dhs823m at year-end 2024. The group also announced the launch of a Dhs625m Asset Enhancement Programme aimed at upgrading rolling mills and expanding its portfolio to include high-strength steel products such as ES600 and ASTM Grade 80/100 rebars. Plans also include installing a new 500 KTPA wire rod outlet. Comprehensive decarbonisation roadmap revealed Additionally, EMSTEEL revealed its comprehensive decarbonisation roadmap, targeting a 40 per cent reduction in greenhouse gas emissions from its steel business and a 30 per cent reduction from its cement business by 2030, with net-zero emissions set for 2050. Strategic agreements signed with Hafeet Rail Infrastructure and Minerals Development Oman (MDO) will facilitate sustainable cross-border transport of up to 4.2 million tonnes of raw materials annually from Oman to the UAE. The group also partnered with 'EMSTEEL's performance in Q1 2025 underscores our ability to deliver consistent value through operational excellence and strategic foresight,' said Engineer Saeed Ghumran Al Remeithi, group CEO. 'Our strategic investments — ranging from decarbonisation and advanced production upgrades to regional logistics and solar infrastructure—demonstrate our long-term vision for sustainable, shareholder-driven growth.'
