Steel Industry News
UAE steel prices stage gradual recovery
Friday, 12, March 2010
Steel prices in the UAE have reached Dh2,150 a tonne this month after increasing every month since last December. This growth has brightened prospects in terms of the capacity of mills to operate at full capacity, according to Danube Building Materials, a company dealing in construction, building materials and shop-fitting.Local steel suppliers are expected to reinforce their presence in the regional market as scrap prices continue to climb, costs of raw materials steadily increase, and billet supplies remain limited.
Further price increases are likely in the coming months, Danube says.The steady price increase in the region, however, is not in tandem with the steep levels at which global steel prices are rising. This indicates that the regional steel market is becoming less sensitive to global market forces.The local steel market required up to 400,000 tonnes of steel per month in the years prior to the downturn, but this has declined to 250,000 tonnes after the global downturn," Rizwan Sajan, Chairman, Danube Building Materials, said.
