With the Covid-19 pandemic having blurred the outlook for the industrial recovery and, concurrently, for rebar demand locally, Omani suppliers have continued to intensify their efforts to encourage trading activity in foreign destinations, in particular, in the UAE. “It is not so rosy here, with prices being under pressure due to low demand. The government has to inject some money to improve the situation. I hope that they will do something soon, with oil prices above $60/mt within the last couple of months,” a representative of a Omani rebar mill commented with regard to the current situation. “The awarded projects here, in Oman are at a standstill due to the tight flow of funds from the government. Hopefully, by the second half of the year we will see some positive changes,” another Oman-based source concurred.
Accordingly, the most recent bookings for rebar produced domestically in Oman have been heard at $617-622/mt (OMR 238-240/mt) CPT, while officially some higher prices have been voiced. One of the main Omani suppliers is said to be in the market with rebar offers at $645-655/mt (OMR 248-251/mt) CPT.
Meanwhile, SteelOrbis has learned of one lot of 5,000 mt rebar sold to the UAE at $625/mt (AED2,300/mt) CPT for March production, while another cargo of the same quantity is said to have been sold at $640/mt (AED 2,350/mt) CPT, also to the UAE. “Omani mills have managed to pick up a few recent orders as they are quite aggressive now in the UAE,” a key Emirati trader stated. There has been information circulating in the market about ex-Oman rebar offers from small mills at $615/mt (AED 2,260/mt) CPT, though the information has not found any confirmation by the time of publication. Consequently, Emirati retailers have again been forced to adjust their prices in order to attract interest. Accordingly, this week prices to local end-users have been voiced largely at $645-660/mt (AED 2,370-2,425/mt) ex-warehouse, versus $654-668/mt (AED 2,400-2,450/mt) ex-warehouse a week ago.
In addition, SteelOrbis has learned of a recent ex-Oman rebar booking to Yemen at $635/mt (OMR 245/mt ex-works). “The potential of Yemen’s market is substantial now. That provides us the opportunity to get higher prices there than elsewhere,” a representative of an Omani mill stated.