Data from the UAE’s construction market shows a 6.5% decline in rebar prices since the beginning of 2025. The price fell from $722.26 per ton (approximately AED 2,652) in January to $675 (approximately AED 2,478) per ton during the period from February to June, based on ex-works terms, excluding value-added tax and transportation and handling costs.
Real Estate Growth Boosts Demand for Steel
Engineer Saeed Ghumran Al Remeithi, CEO of Emsteel Group, noted that the UAE’s residential real estate sector is witnessing remarkable growth, estimated at $36.32 billion (AED 133.3 billion) in 2024, with expectations of reaching $52.32 billion by 2030, driven by a compound annual growth rate (CAGR) of 5.1%.
He added that this real estate boom is driving increased investments in infrastructure, which is expected to grow at a CAGR of 4.26% to reach $52.66 billion (AED 193.3 billion) by the end of the decade.
Increased Demand and Strong Performance for Emsteel
Al Rumaithi confirmed that demand for steel products is expected to grow by 10% in 2025, following a 20% growth in 2024. This has been reflected in the group’s performance, with finished product sales increasing by 21% year-on-year in the first quarter of 2025, reaching 811,000 tons.
He noted that Emsteel, which holds a 60% market share of the UAE’s steel market, continues to support the national industrial sector within the objectives of the “Project 300 Billion,” the federal strategy for industry and advanced technology.
Global Prices Could See Inflation Due to US Tariffs
In a related context, Emsteel confirmed that the US doubling of steel import tariffs from 25% to 50% will not have a direct material impact on its business, given the low volume of exports to the US market, which does not exceed 2% of its annual sales.
However, the group warned of the potential for indirect impacts on the global market, with expectations of reduced international competition and higher domestic prices in other markets, particularly in sectors such as construction and automotive, which could contribute to inflationary pressures on global iron prices.
