Friday, October 12, 2007

SABIC denies monopoly accusations

by Wael Mahdi from Arabian Business

A report published by local newspapers accused SABIC affiliate, the Saudi Iron and Steel Company (HADEED) of entering into an agreement with other local iron and steel manufactures to increase steel prices as of mid-October this year resulting in a state of confusion in the local steel market ... SABIC was surprised of this alleged agreement in place between several plants to increase prices, which it regards contrary to the nature of free-market principles, and in the same time conflicting with the basic principle of the World Trade Organization (WTO) that the Saudi government had agreed on, which is to protect competition and resist monopoly. The Saudi petrochemical sector, which SABIC plays key role in, is believed to be the major sector that will benefit heavily from the accession into the WTO.

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