Following the reversal of the trend in the global raw material and steel markets, rebar suppliers in the United Arab Emirates (UAE) have started to seek all opportunities to get higher prices in new orders. However, as the construction and infrastructure sectors in the region have failed to improve so far, the success of their intentions remains doubtful. Following some stricter restrictions for re-rollers in China implemented in late September due to the energy shortage, rebar suppliers in the GCC have expected to meet some demand from Chinese customers. However, with the lifting of restrictions by China’s government in early October, the UAE-based suppliers have failed to obtain any support. For instance, according to market sources, this month the main non-UAE rebar mill based in the GCC region is said to be producing 30,000 mt of rebar out of their 100,000 mt capacity, shifting their focus to billet sales. All the regional steelmakers that have such an opportunity are expected to follow the same pattern.
While currently the rebar from local retailers in the UAE is booked at $647-670/mt (AED 2,375-2,460/mt), with the highest end of the range being valid for ESI-origin material, some traders have already started testing the water with offers at AED $14/mt (AED50/mt) higher. “Everyone knows that prices are going up and so they are monitoring the developments in the global market. Hence, traders are aiming to buy more and more, but mills have closed their bookings since prices have gone up,” an official at an Emirati rebar mill stated. As SteelOrbis reported earlier, this month the largest longs producer in the UAE, Emirates Steel Industries (ESI), has announced a $55/mt (AED 202/mt) decrease in its rebar price compared to the previous month in order to obtain orders. As a result, the company’s rebar for October production was officially offered at $655/mt (AED 2,405/mt) ex-works. However, according to sources, most rebar bookings in the UAE were done hardly higher than $640-645/mt (AED2,350-2,370) ex-works. Meanwhile, ex-Oman rebar was said to be booked by medium-sized dealers in the UAE at $629-630/mt (AED 2,310-2,315/mt) CPT, though some of the Emirati traders have been seeking to pay $626/mt (AED 2,300/mt) delivered for ex-Oman rebar. “We have been rejecting such inquiries, as locally we get higher numbers,” the Omani rebar supplier stated. According to sources, rebar in Oman domestically is available for dealers at $645-663/mt (OMR 248-255/mt) ex-works, while end-users book it at $663/mt (OMR255/mt) delivered and above.
$1 = AED 3.67
$1= OMR 0.384