Following the sharp surge in global prices after Russia's invasion of Ukraine, caused chiefly by sanctions against Russia and the consequent shortage of supplies of certain raw materials, rebar suppliers in the Gulf Cooperation Council (GCC) region have also increased their prices. Despite the ongoing lack of sustainable support from demand in the region, end-users have had no other choice but to accept higher prices, given the developments in the global market.
Accordingly, local rebar retailers in the UAE have raised their offer prices so far by AED 270/mt ($73/mt) compared to the previous valid prices to AED 2,900-2,950/mt ($790-804/mt) ex-warehouse, with the highest end of the range being valid for ESI-origin material. Some suppliers have not taken long to start testing the market with offers at AED 3,300/mt ($899/mt) ex-warehouse. “The retail market is rising, expecting issues with material shortages only to worsen. Most re-rollers have not offered in March,” a major UAE-based trader commented. In particular, UAE-based rebar producer Hamriyah Steel is said to be temporarily out of the market, opting to evaluate the current market situation. As SteelOrbis reported earlier, rebar produced by the Emirati mills ESI and Union Iron & Steel for March production has been officially offered at $705/mt (AED 2,590/mt) ex-works.
Ex-Qatar rebar is heard to have been traded to the UAE at $815/mt CFR and at $810/mt CFR Singapore a week ago.
In the meantime, in Oman rebar prices have failed to reflect the global trend due to continuing low demand locally, though some price increase has been fixed. In particular, the latest rebar prices from retailers have been heard at OMR 285-290/mt ($738-751/mt) ex-warehouse versus OMR 270/mt ($700/mt) ex-warehouse levels valid a week ago. In the export market, the positions of Omani rebar sellers are said to be better, with offers having stood at $800/mt delivered at the lowest to the Emirati market and at $900-920/mt FOB to other export destinations. “With such high sentiments among customers in the UAE, I do not exclude that rebar prices will exceed $,1000/mt levels soon there,” an Omani rebar producer stated.
“It is a total mess in the market. It has lost its direction,” an official at a Saudi Arabian steel mill stated, commenting on the situation in the regional rebar market.