It is observed that the United Arab Emirates (UAE) based steel mill Emirates Steel Industries (ESI) has kept its domestic rebar prices for April output stable as compared to March output at AED 2,007/mt ($547/mt) ex-works, excluding five percent VAT. The main reasons for this price policy of ESI are reportedly the weakness of demand following the completion of purchases for Expo 2020, the lack of expectations of restocking activity in the UAE ahead of Ramadan which will start on May 6, and also the fear of losing its share of limited demand to other producers, such as Jindal Steel.
Although other UAE-based mills have not announced their domestic rebar prices for April output, their new price levels are expected to be AED 70-80/mt lower than ESI’s. On the other hand, UAE-based traders domestic rebar offers are still at AED 1,950-2,050/mt ($531-559/mt) delivered to customer, indicating sideways movement week on week.
$1 = AED 3.67