Despite the continued unfavorable business environment which has deteriorated lately with the halting of billet import activity in China, Omani rebar suppliers have managed to increase their prices to their domestic market lately. However, the current deal prices continue to lag behind the target levels.
According to market insiders, rebar in Oman is traded domestically at $661-675/mt (OMR 254-260/mt) ex-works, up $12-16/mt within the past month. Meanwhile, prices from retailers are voiced mainly at $689/mt (OMR265/mt) delivered, up $26/mt month on month. “The demand here is pulling down prices. Prices were expected to achieve OMR 275/mt by this time, but we are struggling to sell even at the current levels,” an official at an Oman-based rebar mill stated.
In the billet segment, trading has been mostly constrained by the divergence between offers and bids. Specifically, while the suppliers have been targeting not below $670/mt CPT, the buyers in the UAE are seeking to buy not higher than $640/mt CPT. “We are sold out,” the main Oman-based billet supplier stated, signaling that the company is not in a rush to cut its offers now. Nevertheless, Oman-based suppliers might have no other option but to accept lower prices in future, unless billet demand from Asian customers revives.
$1 = OMR 0.3845