Danube: UAE steel prices witness strong markdown

Steel prices in the UAE have experienced a strong mark down in prices - more than 10% since the last week of February, according to Rizwan Sajan, Owner and Chairman of Danube Building Materials, one of the largest building materials suppliers in the UAE.
 
The company has further revealed that steel is now priced at Dhs2, 600 (US＄707) per tonne , down from the previous price of Dhs2, 900 per tonne (US＄789). The drop is the result of a supply glut caused by the continuing political unrest in some countries in the Middle East and North African (Mena) region - the situation has driven steel suppliers to drop off their products in safer countries in the region, which has created an oversupply of steel.

Reports for the first quarter of 2011 have also reflected a dismal demand for steel as compared to 2010 and during the economic boom of 2007. Sajan explained that Turkey, which is the main exporter of steel to the region, have been experiencing difficulties in exporting to countries that are currently under political siege and unrest. Because of this, the excess supplies have found their way to safer Gulf countries - forcing a drop in the prices. Abu Dhabi is reportedly taking advantage of the drop in prices with a continuous demand for steel products. Construction activity in the UAE capital and the rest of the northern Emirates have stirred in a demand for more than 250,000 tonnes per month.