According to the news on February 9, quotations for imported rebar and billet in the UAE have continued to rise. Traders’ restocking enthusiasm has increased significantly. The linkage between supply and demand has driven prices upward steadily. The market currently shows a strong and positive trend of "demand support, restocking boost, and price increase", in line with the overall recovery pace of the steel market in the Middle East in the near term.
1. Core Overview
According to the news on February 9, quotations for imported rebar and billet in the UAE have continued to rise. Traders’ restocking enthusiasm has increased significantly. The linkage between supply and demand has driven prices upward steadily. The market currently shows a strong and positive trend of "demand support, restocking boost, and price increase", in line with the overall recovery pace of the steel market in the Middle East in the near term.
2. Detailed Price Trends
2.1 Rebar Prices
Imported rebar quotations in the UAE have extended upward. Import prices for core specifications (HRB400E Φ12–25mm) rose slightly from the previous day. Delivered prices to Dubai construction sites (excluding 5% VAT) remain high, with a noticeable premium compared to domestic average rebar prices in the same period, highlighting strong regional demand support.
2.2 Billet Prices
Imported billet prices rose in tandem. As a key raw material for long products such as rebar, imported billet quotations climbed steadily along with end-user demand transmission. Price increases for mainstream billet specifications were largely in line with those of rebar, further driving up cost levels for downstream long products and forming a linked upward trend between raw materials and finished products.
3. Key Drivers of Price Rises
3.1 Core Support: Strong Regional Infrastructure Demand
Intensive progress in infrastructure projects across the UAE has become the main driver of price increases. Major projects including the expansion of Al Maktoum International Airport in Dubai and the Shindagha Bridge project are under continuous construction. The Al Maktoum International Airport project alone is expected to consume nearly 2 million tons of rebar, releasing solid rigid demand that supports imported steel consumption.
Backed by a massive project pipeline worth $772 billion, the UAE’s construction sector has grown steadily. Strong demand for basic steel products such as rebar and billet from transportation infrastructure and other fields has laid a solid foundation for price increases.
3.2 Direct Catalyst: Active Restocking by Traders
Improving infrastructure demand and positive price expectations have strengthened restocking willingness among local traders and engineering contractors in the UAE. Spot supply in the regional market is relatively tight. To ensure project supply and benefit from upward price trends, distributors have increased import volumes and actively built up rebar and billet inventories.
The mismatch between supply and demand has further pushed up quotations steadily, and short-term restocking demand is expected to continue.
3.3 Supporting Factors: Supply Constraints and Cost Support
On the one hand, the UAE’s domestic steel production capacity is limited, with over 60% of construction materials dependent on imports. Imported resources dominate the market, while supply slowdowns in some source countries due to tariffs and capacity adjustments have indirectly supported import prices.
On the other hand, fluctuations in international raw material prices have raised steel production costs. Imported rebar and billet quotations have been adjusted upward accordingly, forming dual support from demand and costs.
4. Short-Term Market Impact and Outlook
In the short term, prices of imported rebar and billet in the UAE are expected to remain strong, supported by sustained rigid infrastructure demand, active trader restocking, and a tight supply situation that is difficult to ease quickly. Prices are likely to extend modest gains.
In the longer term, driven by the UAE’s national policy of economic diversification, sustained momentum in infrastructure and real estate will provide stable support for the imported steel market, keeping prices at high levels. Meanwhile, narrowing or widening price differentials may attract more imported resources, gradually easing tight supply and pushing the market toward supply-demand balance.
