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Steel prices drop 15% in the UAE
Steel prices in the UAE have dropped about 15 per cent since the end of July as a decline in global prices coincided with the summer lull in the desert country, traders said yesterday.
- Reuters
- Published: 23:49 August 10, 2008
Dubai: Steel prices in the UAE have dropped about 15 per cent since the end of July as a decline in global prices coincided with the summer lull in the desert country, traders said yesterday.
A tonne of reinforcing steel bar (rebar), used in construction, fetched around $1,400 yesterday, down from around $1,650 in last week of July, dealers said. On July 20, a tonne of steel was traded at around $1,700 a tonne as demand for construction materials continued to drain the local market.
Gulf states are investing heavily in construction and suppliers of building materials are struggling to keep up with demand in the UAE, the second-largest Arab economy.
The rising cost of building materials is helping fuel inflation across the Gulf, where economies are flourishing on a six-fold rise in oil prices since 2002.
The UAE lifted customs duties on cement and steel in March to stabilise the real estate market.
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