In the United Arab Emirates (UAE), Emirates Steel Arkan (ESA), the largest local steel producer and market leader, has announced its domestic wire rod prices for May production. The company has decided to cut its prices since business has been slow under the influence of Ramadan and the Eid holiday.
According to local sources, demand for wire rods is at a critically low level, and most customers are delaying bookings because they anticipate a further price softening.
“Demand has been very low due to Ramadan and customers in general are expecting another drop, and so they are holding back from buying,” a market source told SteelOrbis.
Accordingly, current offers for wire rods produced by ESA to the domestic market have been voiced at $640/mt ex-works, for May production, whereas previous official levels were at $717/mt (AED 2,633/mt) delivered to Dubai.
While other local wire rod producers such as Qatar Steel FZE and United Steel Industries in the UAE have not yet announced their offers, they are expected to follow the same trend as ESA in the coming days.