Investment opportunities in scrap iron [Archives:2004/802/Business & Economy]
As construction activities rise in all Yemeni cities causing the price of iron to exceed YR105, 000 per ton (a 50 per cent increase), there is a great opportunity for investing scrap iron.
The government has banned re-exporting great quantities of iron because it is imported at such high prices, and leaves the door open to businessmen to establish local iron factories, exploiting the available amounts of the scrap iron.
The authorities say that investment opportunities in the iron industry are encouraging. Investors will receive support and the scrap iron will be sold to them very cheaply.
Iron is the second most used construction material behind cement and Yemeni constructors have underscored the need for scrap iron industry.
“Businessmen prefer to invest in speedy returns, such as tourist hotels, inns, and telecommunication and Internet centers. If they thought of investment in manufacturing iron, their income would increase in the near future,” constructors said.
Constructors call on the authorities to produce feasibility studies promote the significance of iron industry to investors in Yemen.
The official statistics show that Yemen imported 570,000 tons of iron last year, worth of YR 31.5 billion, 455,000 tons of iron powder, and 194, 000 tons of iron pipes. Yemen exported 41 tons of scrap iron, worth YR 561 million. There were also 400 tons of re-exported iron, worth of YR 307 million.
The great quantity of imported iron proves that there are many opportunities to establish iron factories to meet local consumption needs and increase the export rate to the external markets.