July 20, 2008

Rebar prices in UAE hit AED 4,500 per tonne levels

Emirates Business 24/7 reported that steel prices in the UAE increased by 12.5% since March to record high AED 4,500 per tonne.

The And an increase in regional steel production will have no impact on the soaring steel prices in the country, as the construction boom and cost of raw materials will only result in further rise, said traders.

The report cited Mr Rizwan Sajan chairman of Danube Building Materials as telling Emirates Business that the increased supply will not be enough to bring down the soaring price. He said that "Firstly the price of scrap is going up. Raw materials, such as billets, have become more expensive and in the UAE there is a massive demand for steel. It would be wrong to assume that the price rise is due to non-availability or shortage of steel.”

Mr Shyam Bhatia chairman of Alam Steel said that "Gone are the days when raw materials used to determine the cost of the finished product. Today, because steel is high in demand, suppliers of scrap, especially from Turkey, CIS and Europe, are increasing the prices."