Following the announcement by the leading local producer Emsteel of unaltered long prices for February production, UAE-based rebar suppliers have opted to keep offers stable from the previous month. Meanwhile, despite the stable prices, industry participants report that demand is still progressively growing and that consumption is approximately 350,000 mt per month, and is projected to rise further in the coming months.
“Currently, I believe demand is around 350,000 mt. Overall supply is still greater at 380,000 mt, but demand is still climbing, and I predict it to reach 370,000 mt by mid-year,” a UAE-based trader told SteelOrbis
As a result, retailers' current feasible levels in the UAE remain unchanged at AED 2,500-2,530/mt ($680-688/mt) CPT for Emsteel origin goods and AED 2,350-2,420/mt ($640-658/mt) for non-Emsteel materials, with payment by 90-day letters of credit. As previously reported by SteelOrbis, official rebar offers from the top local producer Emsteel for February production remained stable at $722/mt (AED 2,652/mt) ex-works.
Furthermore, sources indicate that other rebar mills have followed the same course as Emsteel, with Arabian Gulf Steel announcing the same pricing as last month at $623/mt (AED 2,290/mt) for February output.
Omani suppliers, on the other hand, have likewise chosen price stability for February, with 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