Construction Week reported that after reaching an extraordinary high in 2008, the price of steel has fallen dramatically over the past year. After hitting a peak in mid-2008 the price of steel in the Middle East began to fall sharply, giving welcome relief to those in the construction industry.
The sharp drop in demand caused by the global economic downturn was the main reason for the price change but factors such as oil prices and an unusually high demand during 2008 were also to blame for the price difference that is now being seen. So what does the future hold for the steel sector and how will this affect those in construction?
Mixed views are currently being given by those in the sector as some nervousness remains regarding the economic climate and future of the region’s construction industry, which is one of the largest consumers of steel products.
Monthly demand for rebar in the region is reported to have dropped to 200,000 tonnes, down by more than 50% compared to July 2008.
However, signs for the immediate and long term future show prices beginning to stabilize and in some cases, rise. Some regional steel providers are seeing such a positive outlook for steel demand that they are also planning expansions.
But the main question, which remains un answered, is that what is in the store in future?