Even though Emsteel, the main local producer in the UAE, has announced the same pricing as in past months, Emirati rebar retailers have chosen to reduce prices even further than before. According to market participants, demand in the local market has been slow in April, causing prices to fall further. However, many participants believe that the approaching month will be better in terms of trading activities, which would increase consumption levels as well as boost the market outlook. According to sources, while April rebar consumption is expected to be about 350,000 mt, May rebar consumption is expected to be approximately 370,000 mt.
Consequently, for Emsteel-origin goods with 90-day letters of credit, retailers' current workable levels in the UAE have decreased month on month from AED 2,440-2,470/mt ($664-672/mt) CPT to AED 2,310-2,430/mt ($628-661/mt) CPT. Similarly, offers for non-Emsteel materials have dropped to AED 2,270-2,309/mt ($618-628/mt), from AED 2,320-2,350/mt the previous month.
Meanwhile, Arabian Gulf Steel, another rebar mill, has followed Emsteel's lead and announced May production pricing of $620/mt (AED 2,280/mt), which is the same as last month.
Omani suppliers, on the other hand, have continued to reduce their offers, with May rebar offers to the UAE submitted at AED 2,250/mt ($612/mt) CPT, down from AED 2,265/mt ($616/mt) CPT for 90-day letters of credit.
$1 = AED 3.67
$1 = OMR 0.3845