Following the announcement of rebar prices by local mills in the UAE for August production, Omani mills have also voiced offers to Emirati customers. However, as the market still lacks demand, the workable level for both domestic and ex-Oman origin products is considered to be much lower.
According to market sources, most offers for ex-Oman rebar are set at $455-458/mt (AED 1,670-1,680/mt) CPT for 90-day payment, which corresponds to the level in previous sales. No deals have been reported. Moreover, the majority of Emirati customers are reluctant to start any serious negotiations, considering current offers not to be workable. “We do not prefer them much at this stage unless they give good discounts. As of now, we are negotiating with UAE mills,” a representative of one of the key trading companies in the UAE said. “There is material in the domestic market for $444/mt (AED 1,630/mt) CPT. Why will anyone take Omani material?” another trader argued. At the same time, some offers at about $447/mt (AED 1640/mt) CPT from Omani mills have also been reported in the market.
Last week, local rebar giant Emirates Steel Industries announced its offers for rebar produced in August at $483/mt (AED 1,773/mt) ex-works, unchanged from the previous month. Other local mills have rolled over the prices as well, offering at $482/mt (AED 1,770/mt) ex-works. However, according to market insiders, the workable level for non-ESI origin material is not higher than $449/mt (AED 1,650/mt) ex-works.
Meanwhile, domestic retail prices for rebar have widened to $457-479/mt (AED 1,680-1,760/mt) ex-warehouse, versus $468-479/mt (AED 1,720-1,760/mt) ex-warehouse a week ago, with the higher end of the range valid for ESI-origin rebar.