Rebar producers have managed to increase their sales prices in the UAE market, following the announcement of Emirates Steel Industries (ESI) disclosed in the middle of the month. However, the deal levels rose by a smaller amount than was initially targeted as demand still lacks sustainability.
Most local rebar producers have been dealing for rebar in the UAE recently at $450-456/mt (AED 1,650-1,675/mt) ex-works, while the sales of ESI to its regular customers have been reported by sources at $463-466/mt (AED 1,700-1,700/mt) ex-works. Domestic retail prices have settled at $470-493/mt (AED 1,725-1,810/mt) for local origin rebar and at $467/mt (AED 1,715/mt) for Omani origin rebar, all on the ex-warehouse basis.
Oman has also managed to sell close to 15,000 mt of rebar to the UAE, mainly at $456/mt (AED 1,675/mt) CPT, up from $433-436/mt (AED 1,590-1,600/mt) CPT in the previous round of sales.
As a result, taking into account that the workable price levels In the UAE were mainly in the range of $430-436/mt (AED 1,580-1,600/mt) ex-works for June production, the sellers have managed to make a significant gain in their prices over the past month. However, subdued demand has resulted in lower deal prices as compared to the officially announced offers. In mid-June, ESI announced its price at $483/mt (AED 1,773/mt) ex-works, thus creating a positive mood in the market, which remained stuck for a couple of months due to the Covid-19 pandemic. For years, ESI has remained the driver of the market, being the largest rebar producer and seller in the UAE. Despite the sales from Oman and occasional volumes coming from other neighboring countries, ESI retains the largest share of the UAE market. In 2018, ESI had approximately a 60 percent share, while the same figure was maintained in 2019. It is expected that the current year will not be an exception despite ESI’s increased sales to Asia.