Granito: Saudi companies have offered to establish new investments to ensure continued supply
Bessada: Inclusion within export subsidies and energy cuts is a necessity to raise product competitiveness
The increasing demand for Egyptian ceramics from the Gulf countries; After activating the decision to impose final dumping duties on Chinese and Indian ceramics and porcelain in the Gulf countries, Saudi companies offered to partner with ceramic manufacturers in Egypt to ensure the continued supply to them.
The Industrial Cooperation Committee of the Gulf Cooperation Council decided, last April, to impose final anti-dumping duties on the imports of the GCC countries of ceramic and porcelain products of the origin of the Republic of China at rates ranging between 23.5% and 76%, and duties on the Indian product at rates ranging between 17.6% and 17.6%. 106%; Based on an anti-dumping complaint filed by the Saudi Ceramic Company, the decision came into effect last June.
According to dealers in the Saudi market, they indicated that the prices of imported products increased by 50 to 100%.
They explained that the Saudi Ceramic Company, which owns about 25% of the size of the Saudi market, its designs are still in need of development, so the buyer turns to the importer.
Sherif Afifi, head of the ceramics division of the Building Materials Chamber in the Federation of Industries, said that the demand has increased by Gulf countries for ceramics in recent months, taking advantage of dumping fees.
He explained that the outbreak of the Coronavirus affected total exports, but that the volume of exports witnessed a growth to Saudi Arabia recently, supported by this decision.
Egypt’s exports of ceramics decreased during the period from January to December 2020 by 17%, to record $ 144 million, compared to $ 173 million in 2019.
The sector’s exports to Saudi Arabia increased to $ 18.8 million in 2020, compared to $ 13 million in 2019, a growth of 43%.
He stressed the necessity to include ceramics in the export support program to raise its competitiveness and make it accessible to different markets.
He said, “The department submitted this request to the Ministry of Commerce and Industry and promised to study it.”
Imad Afifi, export manager of Ceramica Granito, said that the volume of demand for Egyptian ceramics has witnessed a boom during the last two months, taking advantage of the decision to impose dumping duties on Indian and Chinese products of ceramics and porcelain.
He explained that some importers of ceramics in Saudi Arabia had asked the company to allocate complete production lines for them. Desire to meet the growing demand for ceramics.
He indicated that some investors offered the possibility of establishing partnerships and investing in establishing production lines with Egyptian companies. To ensure the sustainability of supply to it.
He pointed out that there is a good opportunity for the Egyptian producer of ceramics to expand into the Saudi market, which is increasingly competitive, quality and designs.
He said that Saudi Arabia has progress in construction and demand, which is a good opportunity and fertile ground for the expansion of exports in it during the coming period and to benefit from imposing dumping duties on Chinese and Indian products.
He pointed out that the Saudi market is ready for export, but Egyptian factories are still in dire need of reducing gas prices, saying: “If the price of gas falls according to the international price, the factories can reduce the cost by about $ 0.25: $ 0.35, and this number is sufficient to penetrate any market.”
Wajih Bessada, a member of the Building Materials and Metal Industries Export Council, said that although there is a good opportunity in front of ceramics currently for the Saudi market, some of the requirements that Saudi Arabia requires for quality certificates require time to be implemented and some requirements are difficult to fulfill.
He stressed the importance of reducing energy prices used in ceramic factories, the most important of which is natural gas, and the need to include ceramics in the export support program to raise its competitiveness.
Farouk Mustafa, the representative of the Building Materials Export Council, said that ceramic exports to Saudi Arabia have been facing a problem for more than 7 months, due to the Saudi authorities’ requirement to obtain accreditation from a consulting office to accept export shipments.
Mustafa added to the “Stock Exchange” that the fees for issuing a product approval certificate are high, and its procedures require a long period, which disrupts the export movement.
The article Egyptian ceramics reap the benefits of anti-dumping Chinese and Indian in the “Gulf” was written in the newspaper Al-Borsa.