UAE-based steelmaker Emirates Steel Industries (ESI) has announced its rebar prices for May production. Accordingly, ESI has reduced its rebar price by AED 92/mt ($25/mt) to AED 1,697/mt ($462/mt) ex-works for May production, as compared to its previous price for April output materials. ESI had initially announced its rebar price for April production at AED 1,863/mt ($508/mt) ex-works but it had revised its price to AED 1,789/mt ($487/mt) as buyers found the initial price level to be on the high side. Also, UAE-based steelmaker Conares has revised its rebar prices downwards to AED 1,690/mt ($460/mt) ex-works for May output.
Following the downward revisions in UAE-based steel mills' domestic rebar prices, UAE-based traders have also reduced their domestic rebar quotations, decreasing them by AED 42.5/mt ($12/mt) week on week to AED 1,730-1,740/mt ($471-474/mt) delivered to customer. Meanwhile, buyers are now expecting a further decline in domestic rebar prices, and so they have slowed down their rebar purchases slightly for the moment. However, the improved weather conditions in the UAE have led to an acceleration in the construction sector and so demand has remained at decent levels.
Turkish rebar producers' current costs prevent them from reducing their rebar offers to attractive levels for UAE-based buyers. As a result, no new price level for Turkish rebar is currently heard in the UAE. The latest offers to the UAE from Turkey were given at the beginning of last week at $430/mt CFR on theoretical weight basis. Meanwhile, market sources state that under current circumstances the maximum price level which could gain acceptance from UAE-based buyers is $425/mt CFR on theoretical weight basis.
$1 = AED 3.67