Aeesoft Blog

May 30, 2011

Steel prices fall to stable levels

Filed under: Business — Aeesoft @ 6:32 am
Tags: , ,

Steel prices have dropped slightly are available down to a range of Dh2,550 to Dh2,700 from Dh3,000 per metric tonne at the beginning of April, based on industry sources. This really is on the other hand using the low array of Dh1,950 and Dh2,250 per metric tonne around mid-March.

Steel Scrap prices have dropped and that we may also be transferring our excess stocks into the market. The marketplace is visiting a shortage of billets as well as the scene is anticipated to enhance towards the end of May.

Some one told 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’s not a situation that we cannot cope with,” someone said.

One added: “The current minute rates are around Dh2,550 on cash-and-carry basis. Turkish traders are still very in the market since their strategy is cheaper as a result of easy option of raw materials and shipping costs have come down. Besides, they’ve got quick access to scrap and the mills are larger, they have economies of scale in steel production. They’re also starting retail shops in Dubai. Hence their costs are competitive. Also iron ore prices came down by $10 that could explain the drop in steel prices.”

The existing price ranges around Dh2,700 plus it depends upon the volume from the contract. But it has dropped from the jump that people saw last month.

The local market has seen a drop sought after due to local conditions. Globally though, iron ore continues to be seeing volatility because of the new quarterly basis contracts contrary to the traditional annual ones.


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