In March this year, Kuwait increased the duty from five percent to 10 percent on rebar imports from non-GCC countries until the end of February 2019, as previously reported by SteelOrbis. In the current week, SteelOrbis has heard widespread rumors that other Gulf Cooperation Council (GCC) countries are also planning to increase the duty on rebar imports from five percent to 10 percent to prevent steel imports deflected from the US because of the Section 232 tariffs.
Having been on a decreasing trend for some time now, domestic rebar prices in the United Arab Emirates (UAE) have declined further by AED 10/mt as compared to levels in SteelOrbis’ report published on May 15, though this downtrend has stopped at the beginning of the current week after the abovementioned rumors were heard. Currently, domestic rebar prices in the UAE are in the range of AED 2,250-2,280/mt ($613-621/mt) delivered to customer, excluding five percent VAT.
While demand in the local UAE rebar market is at low levels, the possibility of a hike in duties on rebar imports has also increased the expectations of an upward revision in UAE-based mills’ rebar quotations for June output. If GCC countries increase their duties on rebar imports by five percent, market players expect trading activity in the local UAE rebar market to accelerate due to concerns over a tightening of domestic rebar supply. Additionally, the UAE government’s announcement that foreign investors will be able secure a visa of up to 10 years with a residence permit is expected to make a positive contribution to the development of the UAE’s steel industry.
$1 = AED 3.67