Lackluster construction activity in the UAE has continued to exert pressure on rebar suppliers. Even though in the middle of September, both producers and traders officially increased prices, citing costlier feedstock, real contracts within this period were signed with substantial discounts.
As SteelOrbis reported earlier, local rebar giant Emirates Steel Industries announced its offers for rebar produced in October at $527/mt (AED 1,936/mt) ex-works, increasing it by $29/mt (AED 106/mt) compared to the previous round of sales. Meanwhile, according to market insiders, the workable levels for rebar in the UAE have been hardly higher then $490-499/mt (AED 1,800-1,830/mt) ex-works, with a few sales fixed even below the lower end of the above range. Although suppliers have failed to achieve their targeted numbers, the bookings in this sales cycle have been done approximately $20/mt higher than in the previous cycle.
In the meantime, local retailers have booked material at about $495-501/mt (AED1,820-1,840/mt) ex-warehouse, with the higher end of the price range for Emirates Steel Industries’ rebar. According to market insiders, some traders have gone down to $488/mt (AED 1,790/mt) ex-warehouse in sales, struggling with cash flow problems.
Ex-Oman rebar for Emirati customers has reportedly been available at $493-501/mt (AED 1,810-1,840/mt) CPT, about $23-26/mt higher than offers announced a month ago.