Despite the announcement by major local producer Emsteel of unchanged longs pricing for March production, UAE-based rebar suppliers have lowered their offers slightly from the previous month. According to market participants, trade has slowed down somewhat since the beginning of Ramadan and is expected to continue through the end of the month. Although demand is weaker this month, sources indicate that overall demand remains high, with consumption of roughly 370,000 mt per month.
“There is a slight price decrease as Ramadan has started, but generally prices are still strong and much higher than the same time last year. The current monthly demand for rebar is around 370,000 mt, whereas the same month last year it was less than 300,000 mt,” a UAE-based trader told SteelOrbis
Over the past month, retailers' current feasible levels in the UAE have fallen slightly to AED 2,490-2,520/mt ($678-686/mt) CPT, down from AED 2,500-2,530/mt ($680-688/mt) for Emsteel origin goods with 90-day letters of credit. Similarly, offers for non-Emsteel materials have decreased to AED 2,350-2,410/mt ($640-656/mt), down from AED 2,350-2,420/mt in the previous month.
As previously reported by SteelOrbis, the leading local producer Emsteel's official rebar offers for March production have remained unchanged at $722/mt (AED 2,652/mt) ex-works.
Additionally, reports indicate that other rebar mills have followed Emsteel's lead, with Arabian Gulf Steel announcing March production pricing of $620-623/mt (AED 2,280-2,290/mt), roughly identical to last month.
In the meantime, Omani suppliers have shown similar stability, with March rebar offers to the UAE submitted at AED 2,330/mt ($634/mt) CPT for 90-day letters of credit.
$1 = AED 3.67
$1 = OMR 0.3845