The domestic wire rod business in the UAE remains subdued because of the halting of sales to neighboring Saudi Arabia. In the meantime, some sellers remain focused on exports, where prices have weakened, while in the domestic market offers have indicated minor discounts.
According to sources, in the local UAE market wire rod for August-September production is available at $795-800/mt ex-works, down by $5/mt over the past two weeks. However, buyers expect that discounted prices down to $780/mt ex-works may be possible, taking into account the significant decline in sales to Saudi Arabia due to the relatively new tariff policy. “Monthly [wire rod] sales to Saudi Arabia were around 20,000-30,000 mt… but now the volumes have dropped by at least 60 percent,” a local producer said.
As a result, exports remain in the focus of UAE-based wire rod suppliers. Their prices have decreased by $10/mt since early August to $780/mt FOB. One of the mills has been trading wire rod in small lots to European destinations, while business remains challenging amid still high freight rates. Moreover, taking into account the competition with the suppliers from Turkey and Russia, the UAE-based sellers may choose to decrease their prices in order for them to be acceptable, SteelOrbis understands.