Steel: 'Taiwan's export ban won't affect Nigeria'
Following the ban on export of certain grades of steels by Taiwan with effect from this month, in an effort to contribute to the squeeze in global steel supply, industry experts have said that the development will not have much effect on the Nigeria's construction industry. Senior Partner, Ove Arup and Partners, Mr. Kunle Adebajo, said in an interview in Lagos on Tuesday that the action was not likely to lead to any major effect on the Nigerian construction industry. He said Taiwan's steel ban could create an artificial shortage of steel, and possibly cause price increase, but it was not likely to lead to any major problem in the construction industry. According to.The Financial Times, Taiwan had earlier said that there would be ban on export of small billets and rebars for three months as from March, while exports of beams and scrap steel will be subject to government approval on a case-by-case basis. This action was described by the Taiwanese government as an attempt to protect its economy from the effects of soaring global steel prices, following an outcry from local construction companies over steel supply bottlenecks. Taiwan is one of the world's leading steel exporters, with $10bn, and is ranked eighth among global steel exporters in 2006, according to the World Trade Organisation. The restrictions come in the wake of an agreement between major iron ore suppliers to increase prices by 65 per cent. Taiwan's government said it would not take any other steps to interfere in the market, such as demanding China Steel, the island's largest steelmaker, to lower prices. Adebajo said most of the steels used in structural steel works in the country were still been imported, and until the country got to a situation whereby it could produced larger section sizes, the industry would always be influenced by what was happening externally. He said, ”We should try to be reliant on our own steel industry, because the steel industry in Nigeria really needs to be developed, It is sad that the iron ore industry is still at the infancy stage. ”We need to have the local supplies, even when we have to import some items, we still find out that the major components or the larger portion is done in the country. ”I think there are so many other factors that influence the amount of construction work in the country, and I think those will still continue to be the dominant ones. ”We need a fully vibrant local steel industry that is efficient and effective, so the government needs to committed to it. They need to get engineers not politicians to work at this, we need to be sure that it is transparent and not linked to corruption. He said that government should be committed, as every country in the world that aspired to be a major industrial nation had a vibrant steel industry.
