The UAE retail rebar market is approaching August on a quieter note, with demand and business activity slowing further under the seasonal summer effects. While Emsteel, the country's major producer, has kept its official rebar price unchanged, secondary mills have lowered their offers in response to weaker sales, reopening the gap between ESI and non-ESI material after retail prices had moved into almost the same range in July. Higher energy costs and continuing regional tensions are still creating pressure across the wider GCC market, though UAE market participants describe the current situation as generally healthy and expect demand to improve more visibly as the winter season approaches. Monthly consumption is currently estimated at around 400,000-450,000 mt, compared to approximately 550,000-600,000 mt in January and February.
“Demand is definitely lower compared to the first few months of the year, with monthly consumption falling from around 550,000-600,000 mt in January and February to approximately 400,000-450,000 mt in July. However, this is mainly a seasonal slowdown, and we expect the market to become more active again toward the winter period,” a UAE-based trader commented to SteelOrbis.
For August production, Emsteel has rolled over its official rebar price for 12-32 mm material at AED 2,917/mt ($795/mt) ex-works, unchanged from July. Secondary suppliers, however, have adjusted their quotations downward amid weaker business activity. AGSI is currently heard at around AED 2,880/mt ($785/mt) CPT, down by AED 40/mt from AED 2,920/mt CPT in July, while Qatar Steel's price has declined by AED 15/mt to approximately AED 2,885/mt ($786/mt) CPT, compared to AED 2,900/mt CPT last month.
The different pricing strategies have also changed the balance in the retail segment. ESI origin rebar is currently available at around AED 3,050/mt ($831/mt) CPT on credit basis, remaining close to the lower end of the AED 3,050-3,100/mt range reported in July. Meanwhile, non-ESI material is being offered at around AED 2,960-2,980/mt ($807-812/mt) CPT in the spot market, down from approximately AED 3,050-3,100/mt last month. As a result, the retail price gap between ESI and non-ESI material, which had almost disappeared in July, has widened again to around AED 70-90/mt.
Purchasing activity in the Omani rebar has also slowed, reflecting the quieter conditions in the UAE domestic market. Nevertheless, Omani producers have kept their August offer level unchanged at around AED 2,900/mt ($790/mt) CPT, the same as in July. Demand for Omani material remains present, though UAE buyers are currently more cautious regarding both tonnages and the timing of purchases.
$1 = AED 3.67
$1 = OMR 0.3845
