Emirates Steel, a subsidiary of EMSTEEL Group, has announced the introduction of a Temporary Import Displacement Discount (TIDD) in response to a recent increase in imported steel sections, particularly from China. The company stated that the surge in imports has led to significant downward pressure on domestic prices and has raised concerns regarding the long-term sustainability of the UAE’s steel industry.
According to Emirates Steel, the increased volume of imports has not only come from longstanding partners but also from new market entrants focused on short-term trade opportunities. This has disrupted market dynamics and is perceived by the company as a strategic and national issue affecting industrial development and security.
To address these challenges, Emirates Steel has taken several steps, including engaging a specialized international trade law firm to conduct a legal and economic evaluation of the situation. Concurrently, the company has introduced the TIDD as a commercial measure to maintain fair competition and support local production.
The TIDD will be applied to eligible domestic orders of steel sections. The value of the discount will be linked to each customer’s reported volume of imports, based on official trade data. As stated by the company, a higher volume of imported steel sections will correspond to a reduced eligibility or value of the discount.
Emirates Steel emphasized that this initiative reflects its commitment to fostering a fair and transparent market aligned with national interests, while promoting sustainable and responsible industrial growth. The company reiterated the importance of high-quality, responsibly produced steel and expressed its intention to lead the UAE’s steel sector in areas such as decarbonization, local value creation, and alignment with global ESG standards.
Headquartered in Abu Dhabi, EMSTEEL’s Emirates Steel has a production capacity of 3.5 mln tons of steel. The group exports to over 70 markets, accounting for 30pct of its sales. The company offers a diverse range of steel products, including wire rod, rebar, heavy sections, and sheet piles.
