On June 27, the largest steel producer and market leader in the United Arab Emirates (UAE), Emirates Steel Industries (ESI), issued its long-awaited rebar price for July production. With regard to the current developments in the market, the company has decided to decrease its price by $10/mt (AED 38/mt) compared to the official offers voiced in the previous month.
Accordingly, the producer declared its rebar price for July production at $821/mt (AED3,012/mt) ex-works, versus $831/mt (AED 3,050/mt) ex-works a month ago. During negotiations, buyers may be able to get discounts larger than usual, according to market sources. “It may have shown solidarity with dealers who are getting frustrated with low customer demand,” one regional rebar supplier commented. Overall, the situation in the Emirati longs market remains unfavorable, with the main pressure coming from insufficient demand from end-users domestically and from the somewhat vague outlook for the global raw material market. Another Emirati rebar producer Union Iron & Steel has voiced its rebar price for July production at the same as ESI, i.e., at $821/mt (AED 3,012/mt) ex-works.
In the meantime, until quite recently, Emirati retailers have traded material at $763-777/mt (2,800-2,850/mt) ex-warehouse, for cash payment, with the higher end of the range valid for ESI-origin rebar. “There is absolutely no demand in the region. All the traders are selling steel at a loss,” a seller stated.