3.55 PM Sunday, 14 April 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:38 05:54 12:22 15:49 18:44 20:01
14 April 2024

Local steel stays stable despite rise in global market prices

Secondary steel makers have raised prices of their products in view of firm global markets. (EB FILE)

By Joseph George

Prices of local steel continues to remain stable despite an increase internationally.

Prices of steel in major markets such as China and India have increased during the last two weeks.

The cost of rebar sold by Emirates Steel continues to remain at around Dh1,850 per tonne.

According to Karel Costenoble, Manager at Mesteel, steel imports which have been minimal, would further drop as it is cheaper to buy locally.

"Turkey is currently selling rebar at $510 per tonne FOB and prices in other markets such as China is increasing. It makes no sense to import steel now," said Costenoble.

According to him, local producers would only increase prices if the international prices continue to remain upbeat for over three to four weeks. "It depends on how the steel prices in other markets would move. If it moves down after a couple of weeks, prices here will remain unchanged," he said.

This week, other steel products especially plates and sheets are priced at Dh2300 per tonne. "The main reason for the increase in international prices is rising demand and an increase in the cost of raw materials," said Costenoble.

Meanwhile according to reports secondary steel makers have raised prices of their products in view of firm global markets, top company official of Uttam Galva Steels said yesterday.

Uttam Galva raised prices by Rs3,000 a tonne, while Bhushan Steel hiked them by Rs2,000 a tonne, they said.

Secondary steel makers buy hot-rolled coils from primary players such as Ispat Industries, JSW Steel, Tata Steel, Steel Authority of India and convert them into cold-rolled coils used in white goods, corrugated sheets, etc.

Earlier this month, JSW Steel also raised its prices by three to five per cent on higher raw material costs and demand growth. "Markets globally have turned around," said Ankit Miglani, director, Uttam Galva.

"We don't see weakness in prices from here on. Seasonally next two quarters are very strong," said Miglani.

Bhushan Steel also sees scope for further price rise in the next two to three months, said Chief Financial Officer Nittin Johari.

In China, CRC and galvanised steel price was stable in the last week of December, traders believed that the market in January may go up further, according to Metalbiz.

Baosteel and Wisco is estimated to continue rising EXW price for February. Market players expected that if mainstream steel mills can continue hike EXW price, there is impetus to push CRC and galvanised steel market up. On December 31, the price of 1.0mm CRC was at Y5,250-Y5,350 per tonne in Shanghai market, which 1.0mm galvanised steel quoted Y5,150-Y5,250 per tonne.

Statistics Department of Abu Dhabi in its weekly building material index quoted rebars from UAE selling at Dh1,950 per tonne, similar to prices from Turkey.

Prices of hightensile steel from Qatar however increased by 1.17 per cent going up from Dh1,907 to Dh1,885. Aggregate and cement prices have, however, remained stable.


Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.