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25 April 2024

Steel prices jump in December

Steel rebar price hit Dh2,650, up Dh250 for the month of December (FILE)

By Staff

Steel prices in the UAE have been on the rise over the last few months due to shortage and hope of resumption of projects by Nakheel and other Dubai developers.

Steel rebar prices jumped by ‬Dh200 to Dh2,650 per tonne in the last week of December due to shortage and industry players believe that the prices will continue rising due non-supply of Emirati and Turkey steel.

The engineering consultants and contractors told Al Bayan that steel suppliers are jacking up prices due to higher demand based on resumption of real estate projects by Nakheel and other Dubai companies.

Steel rebar prices had stabilized during the summer between ‬Dh2,100 to Dh2,300 per tonne but rose by Dh40 at the end of last September to Dh2,340 per tonne. The price rise continued during October and November to reach Dh2,400.

Steel rebar prices rose to Dh2,450 in December and increased further Dh200 to Dh2,650 earlier this week.
Industry players lamented this steep rise in prices.

Essa Al-Attiyah, CEO of Al Qmra Contracting company in Abu Dhabi, said this price rise is unfair and does not reflect the reality and demand.

He pointed out that contracting companies in Abu Dhabi are facing problem in buying steel and in some cases suppliers are pricing rebars at Dh3,000 per tonne on deferred cheques.

Fouad Jamal, CEO of the Trust construction Company in Abu Dhabi, confirmed that there is a sustained increase in the prices of steel.

He said main reasons for the sudden jump in steel rebar prices is the return of activity to Dubai's property development, especially after Nakheel and Dubai Holding successfully rescheduled their debts.

The second reason is that the construction sector in Abu Dhabi is anticipating a decree to grant ownership rights to foreign investors who bought property in the emirate.

Jamal said property investment and development companies - except Sorouh, Aldar and Tamouh – are moving slowly with their projects due to uncertainty surrounding the ownership regulations in the emirate.