Domestic rebar sales prices in the United Arab Emirates (UAE) for November production have declined substantially, following discounts provided by the country’s key supplier.
While the official rebar price from Emirates Steel Industries (ESI) has been kept stable at $473/mt (AED 1,737/mt) ex-works, the supplier has been giving a discount of $22/mt (AED 81/mt) in addition to the regular discounts given to key customers, SteelOrbis has learned. As a result, the producers’ sales prices for rebar in the UAE have decreased by AED 60-70/mt over the past month to AED 1,600-1,610/mt ex-works, which translates as a $16-19/mt drop to $436-438/mt ex-works on US dollar basis. Some deals have reportedly been closed at as low as $430-434/mt (AED 1,580-1,595/mt) ex-works.
Market players generally report there are no solid rebar offers from Oman, while some official prices have been voiced at $441-444/mt (AED 1,620-1,625/mt) CPT for 90-day payment. “They are not willing to match the drop of ESI,” a trader said. In addition, according to some sources, ESI might have provided the discounts this time in order to keep Oman away from sales to the UAE. However, sources have also reported that Oman-based Jindal Shadeed has stopped production for around one week.
Domestic retail prices for rebar in the UAE are currently at $476/mt (AED 1,750/mt) for ESI material and at $460-463/mt (AED 1,690-1,700/mt) for rebar of other origins, both on ex-warehouse basis.
