Steel prices have dropped slightly and come down to a range of Dh2,550 to Dh2,700 from Dh3,000 per metric tonne at the beginning of April, according to industry sources. This is in contrast with the low range of Dh1,950 and Dh2,250 per metric tonne around mid-March, they told Emirates Business.
"We were selling at more than Dh3,000 but now we are selling at Dh 2,650. There has been a drop in the market," said Rizwan Sajan, Chairman, Danube Group. "Scrap prices have dropped and we are also transferring our excess stocks into the market. The market is seeing a shortage of billets and the scene is expected to improve by the end of May."
Meanwhile, Shyam Bhatia, Chairman of Alam Steel told this newspaper that current prices stand at about Dh2,600 per metric tonne. "Demand is strong. There is a shortage of sizes here or there but it is not a situation that we cannot cope with," he said.
Sasikumar Moorkanat, General Manager, Union Steel Mills, added: "The current rate is around Dh2,550 on cash-and-carry basis. Turkish traders are still very active in the market since their product is cheaper due to easy availability of raw materials and shipping costs have come down. Besides, they have easy access to scrap and the mills are larger, they have economies of scale in steel production. They are also starting retail shops in Dubai. Hence their prices are competitive. Also iron ore prices have come down by $10 which could explain the drop in prices."
Riad Bsaibes, Chief Operating Officer of Amana Contracting and Steel Buildings, agreed: "The current price ranges around Dh2,700 and it depends on the volume of the contract. But it has dropped from the jump that we saw a month ago."
He does not see it going to the Dh2,200 plus figure of mid-March. "The local market has seen a drop in demand because of local conditions. Globally though, iron ore is still seeing volatility due to the new quarterly basis contracts against the traditional annual ones."