Stability in steel prices to continue in the short term

Steel prices in the Middle East continues to remain stable amid minor fluctuations with rebar priced between $460 (Dh1,689) and $480 per tonne. Flat products on the other hand has been on a sharp upward trend with prices increasing by $100 during the past four weeks. Rebar in the UAE was priced at $470 per tonne last Thursday and analysts told Emirates Business that the prices would continue to remain on the same level during the next few weeks. Karel Costenoble, Manager at Mesteel, told Emirates Business: "Prices of rebar, which is the most imported product in the UAE, has been stable for some time now. I don't think the prices are going to increase for the time being. On the other hand, it might weaken." According to Metal bulletin research, prices of billet imports to the UAE increased marginally by about 2.3 per cent whereas rebar prices registered a 4.3 per cent increase compared to the last week of June. Billet imports was on July 23 priced at $440 per tonne CFR (cost and freight) Dubai, an increase of $10 compared to last month. Rebars on the other hand increased from $460 per tonne CFR Dubai in June to $480 per tonne CFR Dubai on July 23. According to Costenoble, prices for flat products have increased very fast. "Hot rolled coil is priced at $560 to $580 per tonne CFR Dubai. "It is remained to be seen if buyers will be ready to buy at the increased prices during the next month, which is expected to be quiet," he added. Metalbulletin said import prices of hot rolled coil on July 23 was $555 per tonne CFR Dubai an increase of one per cent compared to the prices a week ago and an increase of 22.5 per cent compared to last month. Import prices of HR Coil for Dubai was $550 per tonne a week ago (July 16) and $455 per tonne a month ago. HDG coil on the other hand was priced at $750 per tonne CFR Dubai on July 23 an increase of four per cent compared to a week ago and a 25 per cent increase compared to last month. HDG coil was priced at $720 per tonne CFR Dubai last week while it was $600 per tonne CFR Dubai last month. The highest per centage of increase was witnessed in import prices of flat rolled products in the US. HR coil was priced $530 per tonne on July 23, a 16 per cent increase compared to last week when the prices were $455 per tonne and a 29.3 per cent increase since last month when the price was $410 per tonne CFR US. The prices of HDC Coil also witnessed a 24.2 per cent increase when it went up from $620 per tonne CFR US to $770 per tonne CFR US. Meanwhile, prices in China have been moving up both for long and flat products. Chinese rebar export prices increased by 3.8 per cent during the past one month from $530 per tonne FOB (freight on board) during the last week of June to $550 per tonne FOB on July 23. Export prices of HR coil on the other hand increased by 10.6 per cent from $470 per tonne FOB last month to $520 per tonne FOB on July 23. Price for construction steel and cold rolled coil both have hit record high for the year 2009 amid the overall steel price rises since mid-April. Production for construction steel has also hit a peak during the first half of 2009. According to a report by China Securities Journal, averaged rebar and wire rod price surged above 800 Chinese yuan (Dh429) per tonne or 25 per cent from mid-April, while cold-rolled products advanced over CNY 1,100 per tonne or 29 per cent. Price for hot-rolled products climbed over CNY 800 per tonne or 25 per cent while medium plate increased modestly by CNY 400 per tonne or less than 13 per cent rise. Price for rebar posted at CNY 4,100 per tonne recently in Beijing higher than February's peak of CNY 3,880 per tonne or increased by 25.4 per cent from April low of CNY 3,270 per tonne, according to statistics from Mysteel, an industry portal. According to State Statistics Bureau, production for construction steel also kept strong momentum in the first half of which output for rebar stood at 57.76 million tonnes, up 10.43 million tonnes or 22 per cent from a year ago while production for wire rod amounted to 44.88 million tonnes rising 9.7 per cent or 3.99 million tonnes on year. Meanwhile, statistics released by World crude steel production for the 66 countries reporting to the World Steel Association (worldsteel) was 99.8 million metric tonnes (mmt) in June – 16 per cent lower than in June 2008. China's crude steel production for June 2009 was 49.4 mmt, 6 per cent higher than June 2008. Saudi Arabia produced 442,000 metric tonnes in June 2009, compared to 405,000 metric tonnes in May 2009. Compared to 2008, the production level in the kingdom increased by six per cent. Saudi Arabia produced 418,000 metric tonnes of steel during June 2008. However during the first half of 2009 Saudi produced 2.21 million metric tonnes of steel a decrease of 13.5 per cent compared to the same period last year. Saudi Arabia had produced 2.56 million metric tonnes of steel during the first six months of 2008. Japan on the other hand produced 6.