Following the widespread rumors which emerged last week that Gulf Cooperation Council (GCC) countries are planning to increase the duty on rebar imports from five percent to 10 percent, producers in the United Arab Emirates (UAE) were expected to increase their domestic rebar prices. In line with these expectations, UAE-based steelmaker Emirates Steel Industries (ESI) has increased its domestic rebar prices by AED 72/mt to AED 2,295/mt ($625/mt) ex-works excluding five percent VAT, as compared to its previous price levels announced on May 25. Also, UAE-based steelmaker Conares has increased its rebar prices by AED 74/mt as compared to its quotations announced on May 25 to AED 2,381.5/mt ($649/mt) ex-works excluding five percent VAT.
Following this development, spot prices in the UAE rebar market have moved up by an average of AED 50/mt week on week to AED 2,300-2330/mt ($627-635/mt) delivered to customer, excluding five percent VAT. Although demand in the local UAE rebar market is at low levels due to Ramadan, sentiment regarding the prospects for the market after Ramadan is positive, market sources report.
$1 = AED 3.67