Business24-7 reported that UAE ministry is investigating the reasons behind the increase in steel prices and will take strong measures to bring down skyrocketing steel prices in the next few days.
Mohammed Abdul Aziz Al Shehi, Director-General of the ministry, said the rise in steel prices over the past two weeks was a big one compared with neighbouring Gulf states and was unjustifiable. He said the MoE would soon implement important measures to take the prices back to their normal levels.
He told “The ministry is aware that there has been a rise in the prices of some steel products and raw materials, especially steel plates. However, the price rise in the UAE has not been proportionate to the rise in the prices of raw materials.”
He told “It is an absolutely unjustifiable increase, since demand for steel has not gone up. We believe that behind each price rise there should be fundamental reasons, but the current one has no such fundamental reasons that could push the price of steel to the unjustifiable levels it has attained,.”
Asked whether speculation among importers and traders could have led to the price rise, steel prices have touched AED 3,500 in Dubai, Mr Al Shehi said speculation as a reason could not be ruled out, and the ministry was still investigating the reasons behind the increase.
The ministry yesterday met with a delegation of the Contractors' Association, led by Board Chairman Dr Ahmed Said Belhasa, to investigate the reasons behind the sudden rise.
A meeting with manufacturers and agents of steel traders is scheduled for next week, said Mr Al Shehi, adding that the ministry is collecting detailed information on the country's steel needs and will write to the Federal Customs Authority to know exactly how much steel entered the UAE and why prices went up.
Mr Al Shehi said the ministry has warned against any deal between suppliers or importers of steel that increases prices. He said “Monopoly is totally unacceptable. The government has opened the door for the import of steel and whoever is found monopolising steel or other building materials will be punished under consumer protection and other laws.”