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UAE steel prices rise 12% in three weeks on tight supply
Reinforcing steel bar (rebar) prices in the United Arab Emirates have risen at least 12 per cent in the last three weeks as demand from construction contractors has increased and supply has tightened.
- Reuters
- Published: 00:38 March 20, 2008
Dubai: Reinforcing steel bar (rebar) prices in the United Arab Emirates have risen at least 12 per cent in the last three weeks as demand from construction contractors has increased and supply has tightened.
A tonne of rebar fetched around $970 yesterday, and was around $860 last week of February, traders told Reuters.
"Demand for steel is increasing everyday, and many contractors want to meet the deadline for their projects at any cost," one dealer said.
"On the other hand, the availability of steel is decreasing, and that is why prices are rising and they may soon hit $1,000."
"Many suppliers won't sell if you are asking for less than 300 tonnes of steel, and some have much higher ceiling for orders," another trader said. "So if you are a small contractor you are facing a major problem."
Billet prices
A pick-up in international billet prices have also boosted domestic steel prices.
Demand for steel in the UAE was 3.5 million tonnes in 2006, according to a report from the Gulf Organisation for Industrial Consulting.
It said demand for iron and steel products in the world's biggest oil exporting region, where more than $1 trillion of infrastructure projects are in the pipeline, would climb 31 per cent to 19.7 million tonnes by 2008.
Consultancy EC Harris has said costs in the UAE, centre of a regional construction boom, could jump by a fifth next year on higher material and labour costs. It added that costs for materials such as cement and steel could rise 19 per cent during the next 12 months.
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