Demand for flat rolled steel in the United Arab Emirates is not very good but local market sources believe demand will increase soon. That informed by traders that increasing demand in the countries neighboring UAE like Qatar, Saudi Arabia and Egypt is likely to improve the UAE market as well.

Flat steel import offers to UAE are at similar levels to those seen earlier in March. HRC offers are at USD 770 per tonne to USD 780 per tonne CFR for ready stock material from mainly far eastern countries while the new orders can be placed at USD 800 per tonne to USD 830 per tonne CFR.

HDG is offered at USD 900 per tonne CFR from China and USD 950 per tonne to USD 1,000 per tonne CFR from India. The country’s only producer, Al Ghurair is asking USD 1,020 per tonne USD 1,050 per tonne for HDG to be produced in June.

Some UAE market players believe the political problems in the Middle East and North African countries and the earthquake in Japan will cause a shortage of material in the region leading to a price increase; while some think the buyers will stay out of the market because of the picture of the future is unclear.

(Sourced from Arab Steel)