Considering the ongoing slowdown in the UAE market due to Ramadan period and the upcoming holiday, Emirati rebar suppliers have continued to lower their offers compared to the previous month. Meanwhile, Emsteel, the main local producer, has decided to maintain long prices for April output unchanged as demand generally remains steady. Even though UAE-based rebar suppliers have reduced their offers for the second consecutive month, general expectations still remain favorable since overall construction project activity is strong.
“Demand is down somewhat due to Ramadan and, compared to the previous monthly consumption of 380,000 mt, March will most likely be 365,000 mt, but this is not unusual or unexpected because overall projects remain strong. Therefore, we will see a partial recovery in April, but not to the level of December and January, because April will have plenty of holidays,” a UAE-based trader told SteelOrbis.
As a result, over the past month, retailers' current feasible levels in the UAE have dropped to AED 2,440-2,470/mt ($665-670/mt) CPT, down from AED 2,490-2,520/mt ($678-686/mt) CPT for Emsteel origin goods with 90-day letters of credit. Similarly, offers for non-Emsteel materials have decreased to AED 2,320-2,350/mt ($630-640/mt), down from AED 2,350-2,410/mt in the previous month.
On the other hand, similar to the previous month, Arabian Gulf Steel, another rebar mill, has issued April production pricing at $620-623/mt (AED 2,280-2,290/mt), following the lead set by Emsteel. However, reports say its offers are lower than the official release, at roughly $612/mt (AED 2,250/mt).
Furthermore, Omani suppliers have also cut prices, with April rebar offers to the UAE submitted at AED 2,265/mt ($616/mt) CPT, a decrease from AED 2,330/mt ($634/mt) CPT for 90-day letters of credit.
$1 = AED 3.67
$1 = OMR 0.3845