The recent strengthening of raw material and steel prices worldwide has failed to have the impact desired by regional suppliers on rebar prices in the UAE. Still under pressure from the dented demand from end-users, some rebar sellers do not reject negotiations, expressing their readiness to decrease prices in order to attract orders. Meanwhile, it is heard that other sellers are not in a hurry to sell at lower prices for now, preferring at least to wait for Emirates Steel Industries’ (ESI) announcement of new prices. “What I feel is that ESI may delay its announcement, expecting to see a rebound in prices after China’s return,” one major UAE-based trader commented. In the meantime, other market insiders find it difficult to believe that prices will not move down further amid such ongoing unfavorable circumstances. “It is messed up here lately. With such insufficient demand, dealers are waiting for ESI to declare new prices AED 300/mt lower than in the previous month,” one regional supplier stated.
Meanwhile, rebar from local retailers in the UAE is mostly currently available at $640-661/mt (AED 2,350-2,425/mt) ex-warehouse, for cash payment, with the higher end of the range valid for ESI-origin rebar, down $27/mt (AED 98/mt) over the past week. “We are selling at this range but not aggressive. I still feel China’s return will start pushing prices up,” a regional trader stated.
Rebar from one of the main Omani suppliers is offered to Emirati customers at $681/mt (AE D2,500/mt) CPT Dubai for 90-day LC payment, though in the market there are lower offers for ex-Oman rebar at $640/mt (AED 2,349/mt) CPT Dubai.
As SteelOrbis reported earlier, in the previous round of sales rebar prices from the Emirati mills have been settled at $715-749/mt (AED 2,625-2,750/mt) CPT.
$1 = AED 3.673