Demand in the local United Arab Emirates (UAE) market is lower than initial expectations against the backdrop of Ramadan, upcoming limited working hours in the UAE due to seasonal conditions, the supply surplus resulting both from domestically produced and ex-Oman rebar, and also due to buyers’s expectation of a further fall in prices.
Meanwhile, domestic rebar prices in the UAE have remained stable over the past week. Accordingly, Emirates Steel Industries’ (ESI) domestic rebar quotations are standing at AED 1,960-1,990/mt ($534-542/mt) delivered to customer, while other producers’ offers are still at AED 1,920-1,940/mt ($523-529/mt) delivered to customer. Market sources are waiting for ESI to announce its new rebar prices for June output. Under the current circumstances, many market players expect the stable trend of ESI’s domestic rebar prices observed over the past months to be replaced by a downward movement. While ESI is expected to announce its new prices this week or at the end of next week at the very latest, SteelOrbis has also been informed that some UAE-based mills are willing to reduce their prices beforehand to conclude sales.
$1 = AED 3.67