Rebar prices in the local market in the UAE witnessed a decline of 8% during May, from an average of about 3,200 dirhams per tonne last March to about 2,950 dirhams per tonne, according to sources working in the building materials trade.
The sources pointed out that the decline came after a sudden jump of 16% from the level of 2,750 dirhams per tonne to 3,300 dirhams per tonne, against the geopolitical crisis background between Russia and Ukraine. Which began three months ago in the last week of February, and its repercussions on iron, raw materials and steel squares “Billet” imports, and shipping lines from Eastern Europe.
It added that the markets, in general, had absorbed the shock of the launch of the Russian special military operation in Ukraine, and the fears that its negative effects would expand beyond what is expected on the building and construction industry, and related materials. Such as rebar and raw elements associated with its industry with the disruption of the supply movement, and the costs of air and sea freight, whose prices have doubled dramatically since the start of the COVID-19 pandemic in late 2019.
It added that the markets, in general, had absorbed the shock of the launch of the Russian special military operation in Ukraine and the fears that its negative effects would expand beyond what is expected of the building and construction industry and related materials. Such as rebar and raw elements associated with its industry with the disruption of the supply movement and the air and sea freight cost, whose prices have doubled dramatically since the beginning of the COVID-19 pandemic in late 2019.
The sources stated that it is expected that rebar prices will continue to fluctuate between rising and falling, against the background of the development the events of the geopolitical crisis and the result of the closure situation in China due to the Coronavirus spread.
The sources said “The economic sanctions imposed by the West, along with the United States and its allies, against Russia, and the resulting global repercussions, play a strong role in influencing the prices of various consumer products and their link to high inflation rates that have reached levels not previously witnessed in some global markets since several decades.”
Rebar price Fluctuation in the global markets in recent months has also been linked to the scarcity of billets and their prices increasing by 27% due to the repercussions of the Russian-Ukrainian crisis, as they are among the largest suppliers of this product in the world. The rise in energy prices and sea freight rates played a significant role in the fluctuations in the rebar market.
Each year, Russia, Ukraine and Belarus export about 6.6 million tonnes of billet; currently, all these quantities are outside the market, and the global markets have witnessed a significant increase in iron ore prices, reaching 20%, and iron scrap by 28%, since mid-February until now.