Emsteel, the leading steel producer in the United Arab Emirates, has announced a price increase for its June rebar production. However, the adjustment has remained below earlier market expectations despite continued pressure from rising raw material and energy costs across the region. Unlike some neighboring Gulf markets, where sharper upward movements have recently been observed, the UAE market has continued to follow a comparatively steadier trend. According to market sources, the major local producer is still attempting to increase prices in a more gradual manner in order to preserve overall market stability. At the same time, demand conditions are still considered to be relatively healthy, supported by ongoing construction activity and project-related consumption. However, market participants indicate that activity has started to slow compared to previous months, pointing to a more moderate pace in the market during the current period. Monthly rebar consumption is currently reported at around 450,000 mt.
As a result, Emsteel has increased its rebar prices for June output to $767/mt (AED 2,817/mt) ex-works for 12-32 mm. On CPT basis, the company’s offers are reported at $770/mt (AED 2,828/mt) for Abu Dhabi and $772/mt (AED 2,836/mt) for Dubai, Sharjah and the Northern Emirates, with payment terms based on 90-day letters of credit (LC).
In the UAE retail segment, rebar prices are currently reported at around AED 2,930-2,950/mt, while market sources expect a further increase of around AED 100/mt to be reflected in the market during next week following Emsteel’s latest announcement.
Meanwhile, other UAE-based producers are also expected to announce upward revisions for June, in line with the latest move by Emsteel.
$1 = AED 3.672
