The UAE retail rebar market has moved into July with higher ex-mill prices, as Emsteel’s latest AED 100/mt increase has been followed by other domestic and regional suppliers. However, the increase has met resistance at the retail level, where buyers are still cautious about accepting higher prices, especially as the summer period has made purchasing activity more selective. Despite this, market conditions remain broadly stable, supported by ongoing construction and project-related activity across the country. Apparent consumption is currently estimated at around 450,000-500,000 mt, largely stable compared to the previous month, while sources say the market is still healthy overall, though buyers are more careful in terms of volumes and price levels.
“The market has not fully absorbed the AED 100/mt increase, and resistance remains strong at the retail level. Non-Emsteel mills were already offering at higher levels, so buyers are finding it difficult to accept the same increase from them. A more moderate adjustment would have helped keep the retail market more balanced,” a UAE-based trader commented to SteelOrbis.
For July output, Emsteel has increased its official rebar price by AED 100/mt, setting its new level for 12-32 mm material at AED 2,917/mt ($794/mt) ex-works, compared to AED 2,817/mt ($767/mt) ex-works in June. Other suppliers have also moved higher in line with Emsteel’s latest price adjustment. Qatar Steel is currently heard at around AED 2,900/mt ($790/mt) CPT, up from AED 2,800/mt CPT in June, while AGSI is reported at around AED 2,920/mt ($796/mt) CPT, compared to AED 2,820/mt CPT last month.
In the retail segment, both Emsteel origin and non-Emsteel domestic rebar are now being heard at around AED 3,050-3,100/mt ($831-845/mt) CPT, compared to AED 3,025-3,050/mt CPT for Emsteel origin material and AED 3,000-3,025/mt CPT for non-Emsteel material in June. As a result, the gap between Emsteel and non-Emsteel material has largely disappeared at the retail level, even though non-Emsteel mills are still considered to be priced higher at the producer level. Market participants say traders are finding it difficult to reflect the full mill-side increase in retail prices, as buyers are resisting higher levels and retail prices for different origins have moved into a similar range.
On the import side, Saudi Arabian suppliers are still not heard in the UAE market, as they remain focused on their domestic sales. Omani producers, however, continue to offer material to the UAE, with their July price announced at around AED 2,900/mt ($790/mt) CPT, up by AED 100/mt from around AED 2,800/mt CPT in June. Market expectations point to possible Omani sales of around 100,000-120,000 mt this month, compared to approximately 130,000 mt reported in May. The expected decline is mainly attributed to a planned 10-day maintenance shutdown, while demand for Omani material is still expected to remain present in the UAE market.
$1 = AED 3.67
$1 = OMR 0.3845
