The revival in steel prices in Middle East, after touching recent low in July end, increased for the sixth consecutive week as steel prices across the region posted modest gains last week.
The revival is hinged on the expectation of steel players in Middle East that steel demand would see recovery after buyers return from Ramadan holidays.
As per market reports, there is a shortage on supply side as many projects are restarting to complete 40% execution stage creating push non demand side. Moreover the buoyancy in steel prices in MEA is also supported by recent revival in scarp, billet and HRC import prices.
On the other hand, MEA players are concerned over the real revival of demand and overcapacity in various countries and would adopt cautious approach in buying.
Thus the market is at a critical juncture and this week will set the tone for coming months.
The Middle East Long Product Price Index MLPPI surged by 37 points in this week whereas the Middle East Flat Products Index MFPPI also increased by 33 points. The overall price index Middle East MEASPI up by 36 points.