Steel prices in the UAE have experienced a strong mark down in prices - more than ten per cent since the last week of February, according to Rizwan Sajan, Owner and Chairman of Danube Building Materials, one of the largest building materials suppliers in the UAE. The company has further revealed that steel is now priced at AED 2,600 per ton, down from the previous price of AED 2,900 per ton. The drop is the result of a supply glut caused by the continuing political unrest in some countries in the Middle East and North African (MENA) region - the situation has driven steel suppliers to drop off their products in safer countries in the region, which has created an oversupply of steel.

The leading company has also cited recent industrial reports showing that the UAE’s steel market remains flat despite signs of marginal improvement in demand. Reports for the first quarter of 2011 have also reflected a dismal demand for steel as compared to 2010 and during the economic boom of 2007. Sajan explained that Turkey, which is the main exporter of steel to the region, have been experiencing difficulties in exporting to countries that are currently under political siege and unrest. Because of this, the excess supplies have found their way to safer Gulf countries - forcing a drop in the prices. Abu Dhabi is reportedly taking advantage of the drop in prices with a continuous demand for steel products. Construction activity in the UAE capital and the rest of the northern Emirates have stirred in a demand for more than 250,000 tons per month.

“Steel prices have dropped dramatically from AED 2,900 to AED 2,600, reflecting a 10 per cent difference, “ said Rizwan Sajan, Chairman, Danube Building Materials. “The slash in prices is the result of the continuing political unrest in some countries in the MENA region; forcing major steel exporters like Turkey to drop the undelivered products to safer countries like the UAE. Abu Dhabi is wisely taking advantage of this sudden drop in prices to help supply the demand for steel products in the capital’s current construction projects.”

Danube started as a building materials supplier seventeen years ago - later introducing its version of a one-stop-shop concept called ‘Danube Buildmart’ in 2009 to target a diverse retail segment. The company has recently added 10,000 new products in its portfolio for Buildmart to meet housing needs, bringing its total product portfolio to more than 25,000 products. Danube remains steadfast in commitment to become a premier one-stop shop for building and construction materials and living up to the company’s reputation of excellent customer service.
 

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