Suffering from weak demand from end-users and negative sentiments generally prevailing in the global steel market, local rebar suppliers based in the United Arab Emirates (UAE) have had no other option but to reduce prices in order to obtain orders. However, while regional billet suppliers have continued to prefer to export material to China rather than to supply domestically, local re-rollers appear to be in a highly challenging situation.
Specifically, the largest crude steel and longs producer in the UAE, Emirates Steel Industries (ESI), has announced a $55/mt (AED 202/mt) decrease in its rebar price compared to the official levels declared a month ago. As a result, the company’s rebar for October production is officially offered at $655/mt (AED 2,405/mt) ex-works. Despite a huge drop in the official price, the rate of reduction in workable prices will be less visible, according to market sources. Specifically, discounts which buyers may be able to get during negotiations are said to be around $8-11/mt less than before. Another Emirati rebar producer Union Iron & Steel has voiced its rebar price for October production at the same level as ESI, i.e., at $655/mt (AED 2,405/mt) ex-works. Meanwhile, other local rebar producers have taken their time to declare new prices, while closely observing recent developments in the market. “I expect some improvement in activity since the price is comfortable for contracts,” a UAE-based rebar producer stated.
$1 = AED 3.673