UAE-based retailers and some of the local producers have increased their rebar prices this week, since the price rise announced earlier by market leader Emirates Steel Arkan (ESA) has been partially accepted in the market. However, the overall level of end-user demand has not increased much over the past month, but has remained at a decent level. A certain slowdown may be seen during the ongoing Ramadan period.
As a result, local rebar retailers in the UAE have raised their offer prices by $19-27/mt (AED 70-100/mt) over the past month to $713-721/mt (AED 2,620-2,650/mt) ex-warehouse for ESA-origin material. In the meantime, rebar prices for non-ESA have increased by $35/mt (AED 130/mt) to $702-707/mt (AED 2,580-2,600/mt) ex=warehouse for 90-day LC payment.
“Traders’ prices are up which means they have restocked at higher levels from mills and their stock average [price] is also higher now,” a source told SteelOrbis.
Similarly, UAE-based rebar producers Arabian Gulf Steel and Hamriyah Steel have increased their official prices to $721/mt (AED 2,650/mt) ex-works and $686/mt (AED 2,520/mt) ex-works for LC payment, respectively, although, according to market participants, Arabian Gulf Steel provides discounts and is selling at $694/mt (AED 2,550/mt) ex-works, which is closer to the estimated workable level.
As SteelOrbis reported earlier, rebar produced by the Emirati mill ESA has been officially offered at $727/mt (AED 2,669/mt) CPT Abu Dhabi and $729/mt (AED 2,677/mt) CPT Dubai, Sharjah and North Emirates for 90-day LC payment.
In the meantime, in Oman, demand has remained slower in the domestic market, causing mills to focus more on the export segment. The most recent ex-Oman rebar offers to the UAE have been at $694/mt (AED 2,550/mt) CPT for 90-day LC payment, up from $658-667/mt (AED 2,420-2,450/mt) CPT in the previous month. In addition, as SteelOrbis reported earlier, there has been a 25,000 mt rebar sale reported at $615/mt FOB Oman to an Asian destination.
$1 = AED 3.67