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Construction boom sends steel prices up 45.2%
Staff Report



Dubai: Steel prices, especially those for hot rolled plates, jumped by 45.2 per cent in August, according to a report.

"Dubai is affected by the situation in the Middle East and the world. Due to high consumption in the local market, steel prices increased even more sharply," said a report published yesterday by the Dubai Chamber of Commerce and Industry (DCCI). "Steel production in the region increased by 12 per cent in 2005, from 14.2 million metric tonnes in 2004, while on the other hand consumption increased by 37 per cent in 2005 from, 25.3 million tonnes in 2004."

World steel production was affected by high prices for iron ore, which increased by 71.5 per cent in 2005. The product on the world market had an excess supply of 119 million metric tonnes in 2005, and from the supply-demand point of view this should stabilise prices. In contrast prices have increased. For example, the price of hot rolled plates increased by 13.6 per cent from December 2005 to August 2006.

Apart from steel, cement prices increased by 11 per cent in August. For cement Dubai has the highest price increase compared to the Middle East and world markets. Total cement production in 2005 was estimated at 11.2 million tonnes, and consumption was estimated at 12.8 million tonnes.

In the Middle East, cement production totalled 122 million tonnes in 2005, while consumption was estimated at 128 million tonnes.

The region is facing a deficit of 6 million tonnes and this increased the price in the region by 10 per cent.

In 2005, Dubai aluminum imports amounted to Dh2 billion (of which, 50 per cent were raw materials), exports stood at Dh2.4 billion, while re-exports were only Dh226 million, according to the report.

The construction boom in Dubai has brought an unprecedented demand for wood based products. The value of wood imports increased from Dh1.5 billion in 2004 to Dh1.9 billions in 2005.

http://archive.gulfnews.com/articles/06/10/09/10073337.html