Raw material price hike pushes up rebar costs

Rebar is currently sold at Dh2,000 to Dh2,100 in the local market. (EB FILE)

Prices of reinforced bars in the UAE have further increased by Dh50 to Dh100 per tonne, almost three weeks after a similar hike in the international market.

Local mills, which had resisted a hike, said they had to increase the cost due to non-availability of scrap and increasing prices of raw materials. Demand, however, continues to remain weak with no significant changes, compared to the last three months.

Rebar is currently sold at Dh2,000 to Dh2,100 in the local market. "Those customers who buy the product against immediate cash payment are offered Dh2,000, while those purchasing on credit pay an additional Dh200," said a senior official from a trading company.

Last week, rebar prices had increased by just Dh50 per tonne when global steel prices went up by about $40 (Dh147) to $50 per tonne.

Meanwhile, according to statistics released by the Statistics Centre, Abu Dhabi, prices of most building materials in the UAE remained stable, despite a minor fluctuation in prices of steel.

While the cost of BRC mesh 8mm from the UAE reduced by 4.5 per cent, the price of 6mm BRC mesh from the UAE increased by 3.22 per cent. The cost of a piece of 8mm BRC mesh dropped from Dh110 to Dh105. The cost of a tonne of high-tensile steel from Qatar, however, dropped by 1.1 per cent or Dh22.

Cement and concrete prices have remained stable. A tonne of sulphate resistant cement was priced at Dh290 while a tonne of Al Etihad sulphate resistant cement was priced at Dh300 per tonne. Al Etihad Portland cement was priced at Dh280 per tonne. The cost of Al Etihad white cement however, dropped by 0.9 per cent, from Dh555 a tonne to Dh550 per tonne.

 

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