Local wire rod prices in the UAE have weakened over the past month amid pressure from buyers and modest end-user business activity. However, some mills have decided to decrease their prices officially to the level which were earlier available at a discount for serious buyers.
The largest domestic producer Emirates Steel Arkan (ESA) has decreased its official offer for December production by $15/mt over the past month to $615/mt ex-works, SteelOrbis has learned. In the meantime, local producer Qatar Steel FZE is reported to be offering wire rod at $595-600/mt CPT, while United Steel Company is offering at $600-610/mt CPT. Despite the discounts, some buyers still believe the workable levels should be at $585-590/mt ex-works/CPT.
In the export segment, the awaited shipments to Saudi Arabia have not started yet, though some of the mills are present in other markets. Several wire rod lots have recently been sold to neighboring Middle Eastern countries at around $585/mt FOB. The same level is still available for overseas customers. In Europe, which is the targeted destination, UAE-based suppliers are struggling to compete with sellers from North Africa who are not subject to a quota, while they are offering for shorter lead times and at attractive prices. In particular, Algeria is ready to sell at around $570-580/mt FOB, while Egypt is at $600-620/mt FOB depending on the mill.