UAE steel prices increase again by up to 14 per cent

Steel prices in the UAE have increased again, by five to 14 per cent, following a marginal drop earlier in the month.

According to statistics released by the Statistics Center Abu Dhabi (Scad), prices of 10-32mm rebar in the UAE and bars imported from Turkey have risen by Dh280 per tonne, going up to Dh2,250 on October 13, compared to the previous week.

Prices of flat steel, too, have increased by 5.4 per cent to Dh2,600 per tonne compared to Dh2,466 during the first week of October.

As local producers and traders pointed out, steel prices continue to remain volatile amid weak demand and strong supply.

Ajay Aggarwal, CEO of RAK Steel, said the factory was yesterday selling rebars at Dh1,950 per tonne.

"Post-Ramadan, we are witnessing an increase in activity, but it is pretty marginal. There has been nothing significant to move the prices up. However, various other factors continue to work on the price structure, making it more volatile," he said.

RAK Steel, which produces more than 500,000 tonnes of steel annually, has planned to increase its production to about 750,000 tonnes by year end.

Prices have remained volatile during the past few months. In August, prices of rebar increased by about $40 (Dh147) compared to July. During the first week of August, rebar prices shot past $500 per tonne for the first time since February this year. In July, rebar was priced at about $485. Turkish mills were booking rebar to UAE customers at $515 during the second week of August and less than $500 until August.

The price of 6-8mm rebar from Turkey saw a 16.75 per cent increase, going up by Dh330 compared to the first week of October. It increased to Dh2,300 per tonne from Dh1,970 on October 6.

Shyam Bhatia, Chairman of Alam Steel, said demand has been getting slightly better post-Ramadan.

"Compared to sales during Ramadan, we have witnessed a small increase in movement. However, it would be very difficult to predict how the market would move during the next few weeks," he said.

Bhatia said the worst of the crisis is already over.

"I can confidently say we have already passed through the worst. From here the situation can only improve. The prices are holding. It all depends on the production levels in the market," he said.

Meanwhile, the price of rebar from Qatar, which went up in the first week of October, has declined by 1.6 per cent. A tonne of 10-32mm rebar was priced at Dh2,250 on October 13, compared to Dh2,287 on October 6. It was priced at Dh2,256 on September 28.

While prices of flat steel also increased by five per cent, beams from Ukraine, Japan and Korea fell between three to four per cent. Cost of flat steel in Dubai went up by Dh133 per tonne going up to Dh2,600 per tonne from Dh2,466 on October 6.

According to reports quoting statistics compiled by the Turkish Statistical Institute (Tuik), Turkey's semi-finished steel product imports, including steel billet, bloom and slab, totalled 307,428 metric tonnes in August this year.

A report in Steel Orbis said Turkey's main semi-finished steel product source was the Commonwealth of Independent States, with imports of 230,488 metric tonnes, accounting for 75 per cent of total semi-finished product imports in August. The CIS was followed by Europe with 77,000 metric tonnes – 25 per cent of the total semi-finished product imports.

Meanwhile, in the January to August period, Turkey imported 2.73 million metric tonnes of semi-finished products. Of this amount, 2.5 million metric tonnes was imported from the CIS and 228,700 metric tonnes from Europe.

In the first eight months of the current year, the average import price of semi-finished steel products was $394 per metric tonne.

Graphic: Steel price index

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