Following growing pressure from continuing weak demand from end-users, Emirati rebar suppliers have been forced to offer substantial discounts in order to encourage trading activity lately. However, coming towards the end of the current week sentiment has changed visibly, with prices being expected to rebound in the next round of sales, particularly amid the ongoing boom in global commodities prices. “Looking at retail prices, I believe we are entering Ramadan with some stability. Beyond that, I believe it will be very competitive. However, prices will definitely shoot up next month due to rising costs,” a local rebar supplier commented with regard to the outlook for the segment. “Last week, the market picked up and volume sales have increased towards the end of this week. It seems that all mills have closed their orders for April. In fact, traders want more quantities. They may guess that these prices will not exist next month,” another rebar producer stated.
As SteelOrbis reported previously, all local rebar producers in the UAE have rolled over their prices for April production. As a result, officially rebar prices in the domestic market have been available at $676-691/mt (AED2,480-2,535/mt) ex-works, for LC payment. However, according to market insiders, the workable levels for rebar in the UAE have been at $627-646/mt (AED 2,300-2,370/mt) ex-works.
In the meantime, until quite recently Emirati retailers have traded material at $632-654/mt (AED2,320-2,400/mt) ex-warehouse, for cash payment, with the higher end of the range valid for ESI-origin rebar. “From today, we are trying to increase prices by AED 50/mt,” a local key trader stated, echoing the sentiments expressed by the Emirati rebar producers.
Meanwhile, one of the main Omani suppliers is said by market insiders to increase its rebar offers to Emirati customers to $633/mt (AED 2,325/mt) CPT, following the most recent bookings at $620/mt (AED 2,275) CPT. “We have not sold to the UAE this time as we are not getting higher than AED2,250/mt CPT, against AED2,300/mt CPT last month. Sentiments are very low, though prices are poised to rebound,” the representative of another Omani mill stated.
$1 = AED 3.67