The Middle East continues to be one of the centers of demand in the global construction industry. Countries in the region are investing heavily in infrastructure, housing and social projects as part of the transition to a non-oil economy. According to World Bank data, more than USD 1 trillion has been allocated for 117 major projects planned to be completed by 2030. Investments from countries such as China are also accelerating the projects.
Despite Ramadan, rebar demand in the UAE saw a limited decline. Rebar prices fell by USD 5.5 per ton to USD 667-681/t in early March. Orders were down only 3-5% from February. Experts believe that demand has stabilized thanks to mega projects and ongoing infrastructure works.
UAE scrap and rebar market remains stable during Ramadan
Processed HMS 80:20 scrap in the UAE fell to USD 324-327 per ton. Large steel mills continued their purchases, while demand from small-scale mills weakened. However, overall stability prevailed in the market and expectations for a post-Ramadan recovery persist.
Local producers reported that monthly rebar sales remained above 400,000 tons. Second-tier producers closed their sales in a range of AED 2,250-2,280/t (USD 613-621/t), while retail prices were trading at AED 2,350-2,480/t (USD 640-675/t).
Prices decreased more sharply in Saudi Arabia and Kuwait
The Ramadan effect was more pronounced in Saudi Arabia. Prices decreased by USD 8-19/t to USD 600-608/t EXW. Major producers such as Al Ittefaq, Rajhi and Al Yamamah offered discounts, while prices at smaller suppliers ranged between USD 573-579/t. In Kuwait, rebar shipments from Qatar are expected to push prices down to USD 555-560/t.
Orders increase in UAE HRC market
In the UAE HRC market, 40,000 tons were purchased from India and 25,000-28,000 tons from Japan. Deals were signed from China at USD 490-510/t with April shipments. Re-rollers and pipe producers restocked, while uncertainties over China's production policies continue to weigh on the market.
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