Business activity in the UAE rebar market has been slow after the holidays, thus partly limiting billet purchases by local re-rollers. Some improvement is expected within the upcoming weeks.
Rebar producers in the UAE currently consider $512-517/mt (AED 1,880-1,900/mt) CPT prices for 90-day payment to be workable. Demand has been slow as buyers are waiting for the market situation to gain more clarity. According to the market sources, activity will improve in the coming weeks, but buyers are targeting $14/mt (AED 50/mt) discounts. It is worth mentioning that local mills’ official offers for September, announced earlier this month, are at $531-532/mt (AED 1,950-1,953/mt) ex-works.
Stockists’ rebar prices in the UAE are nowadays set within $539-542/mt (AED 1,980-1,990/mt) ex-warehouse for products from local steelmaker ESI and are at $525-528/mt (AED 1,930-1,940/mt) ex-warehouse for rebar of other origins, SteelOrbis has learned.
Market players expect some demand improvement in September. “We certainly hope so, otherwise business is becoming unviable,” a trader noted. Currently, monthly rebar consumption in the UAE is estimated at 220,000 mt on average, while this time last year the figure was closer to 300,000 mt.
Offers from Oman have been coming at $517-523/mt (AED 1,900-1,920/mt) CPT for 90-day payment, while some deals have been reported within this range. “Such a level is workable for small lots. For bigger batches, the price is not higher than AED 1,880/mt CPT [$512/mt CPT],” a local player told SteelOrbis.
Weak business activity in the UAE rebar market affects billet purchasing activity. The price idea for the non-GCC origin billet is not higher than $410-420/mt CFR. In the meantime, indicative offers for billet from the CIS and India are estimated at around $435-440/mt CFR, SteelOrbis understands. Locally some buyers are reportedly ready to purchase at around $430/mt CPT. UAE-based Arabian Gulf Steel Industries is in the market with $440/mt ex-works, while some discounts may be possible.
Prices exclude five percent VAT.
$1 = AED 3.673