Podgorica (MINA-BUSINESS) – The greatest problems faced by the steel industries of Serbia and Montenegro include a small market and idling capacities and big investments were vital for the modernisation of this sector, chairman of the board of directors of the Niksic steelworks Arsenije Jovanovic said. Speaking at the round table Metallurgy in Montenegro - current status and perspectives, Jovanovic said overall Yugoslav steel output in 2001 was 55 million tonnes greater than the consumption. "The problem is in low, dumping prices of imported steel, which are below our production costs," Jovanovic said. Ranko Milovic, a consultant for development at the Niksic steelworks, said the liberalisation of steel imports introduced by the Yugoslav government in 1999, could eventually force domestic producers to close down. Varuzan Kevorkijan of Slovenian company Impol said the government had to create conditions to attract foreign capital. "There is always money around for development projects. But companies should not be sold to strategic partners. These should only be allowed to finance development," he said.