December 03, 2008

Steel availability in UAE not an issue – Report

Emirates Business reported that a leading building materials company in UAE does not see any shortage of steel in UAE although the prices have soared.

Mr Rizwan Sajan chairman of Danube Building Materials told Emirates Business that “There is still no shortage in the steel market but you have to pay the high prices. There is also no black market because availability is plentiful. Whatever quantity you want is available, it is just that the price has become inflated.”

Mr Sajan said the price of steel has shot up since the beginning of 2008 from AED 3,000 per tonne to AED 4,000 and that it is up by 60% over last year’s average price of AED 2,500.

He however added that “But in the case of the cement sector, even if you want to pay the price, supplies are not available. So then the black market comes into the picture.”