UAE steel bar prices down 5.6%

Prices of steel bars in the UAE has dropped by 5.6 per cent, or by Dh117, compared to the last week of September, according to data made available by Statistics Centre Abu Dhabi (Scad).

Local prices of 10-32mm steel bars decreased from Dh2,087 per tonne on September 26 to Dh1,970 per tonne. Among the main reasons for the decrease in local prices is lack of demand and a correction in the prices of scrap and billets and prices of Turkish steel bars.

Local rebar prices have been on the rise for the past two months and were expected to fall as the increase was not supported by a rise in demand.

Traders in the UAE had told Emirates Business that the rise in rebar prices was bound to fall following the end of Ramadan.

According to a senior official from Danube Building Materials, Turkey is trying to hold the prices but the prevailing condition is bound to cause minor adjustments.

"There is not much activity so far either in the Turkish market or here. The market continues to be quiet and soft. We have been importing about 15,000 tonnes monthly for the past few months and the current scenario looks to remain the same," said the official.

A project manager last month said that high prices of rebar would not be sustainable without an increase in local demand.

"I have been monitoring the movement of steel prices closely of late. The local prices today are a mere reflection of price in Turkey. If prices in Turkey fall, local producers will soon follow course," said the official.

Export prices from Turkey too has fallen by 7.29 per during the same period. The price of 10-32mm steel bars from Turkey went down by Dh155 from Dh2,125 on September 26 to Dh1,970.

Meanwhile, according to reports, steel billet prices in the Black Sea and Turkish market has eased slightly, as scrap prices edged down and buying remained subdued.

Traders said prices were likely to come under pressure in the coming weeks as restocking wanes with many traders and stockists having secured material until the end of the year and due to overcapacity after mills restart production, said a Reuters report.

Traders quoted Black Sea free-on-board billet between $435 (Dh1,598)-$440 a tonne, from $445-$450 a tonne last week. Scrap prices have eased to around $285 a tonne from $300 a tonne, but are not likely to come off further, they said.

Quoting a Turkish based trader the report said that the market is wary of a correction in the price. The mills, the trader said, are trying to push the prices higher. "But there isn't that much demand, so we don't see many deals," he said.

Billet prices have risen above $400 a tonne since early August, as the producers begun to bring back some idled capacity on the back of improved orders.

Meanwhile, reports quoting Istanbul Mineral and Metals Exporters' Association said that in September Turkey's total steel bar exports, including rebar amounted to 560,000 tonnes decreasing by 37.24 per cent year on year and up by 2.82 per cent month on month. The revenue generated by these exports totalled $268.3 million declining by 75.1 per cent compared to September 2008 and up 7.18 per cent month on month.

In September, the average export price of Turkish steel bar was $479.5 per tonne up $19.5 per tonne or 4.23 per cent from August levels but down $730 per tonne or 60.33 per cent from $1,209 per tonne in September 2008. In the January to September 2009, Turkey steel bar exports slid 15.91 per cent year-on-year to 7.26 million tones totalling a value of $3.28 billion down 59.64 per cent compared to the corresponding period of the previous year.

Meanwhile according to the Scad, price of Qatari steel bars has increased by Dh31 per tonne compared to the last week of September. A tonne of 10-32mm steel bars is currently priced at Dh2287.78 in Qatar.

According to reports Qatar Steel, an Industries Qatar subsidiary, has increased the prices of uncoated and epoxy coated reinforced steel bars of various dimensions. Qatar Steel also increased its rebar prices for domestic sales by QR100 per tonne ($27/t) to QR2,000 per tonne ($549/t) with effect from October 1.

The raise is applicable to delivery at site within Doha city. Qatar Steel had frozen prices from April 2008 and in November made a 25 per cent cut to bring down costs for the construction sector.

Scad figures also revealed that prices of flat steel products increased by 2.75 per cent. Turkish flat steel increased from Dh2,400 per tonne in September last to Dh2,466 per tonne.

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