Emirates Steel Industries (ESI), the key longs producer in the United Arab Emirates (UAE), has decided to reduce its domestic wire rod prices. As a result, the material for November production is now available at $465/mt ex-works, down $20/mt compared to the previous month’s level. According to the market sources, insufficient demand, coupled with the increasing supply in the country, may have been one of the reasons for the downward step.
Other local producers were offering wire rod in the UAE at $470-485/mt CPT, and so they are expected to decrease their prices by at least $10/mt in the near future in order to be competitive, SteelOrbis understands. The UAE’s offers to Saudi Arabia may be changed also; however, the price movement will depend on the local market trend on the buyers’ side. The latest ex-UAE wire rod offers to Saudi Arabia were reported at $510-520/mt CPT.
