Emirates Steel Industries (ESI), the leader in the UAE’s rebar market, has announced its local offer for July production, increasing its price as expected. The supplier’s new price has been set at $483/mt (AED 1,773/mt) ex-works, up $23/mt (AED 83.5/mt) compared to the previous round. Moreover, ESI had rolled over its price in the April-May period due to subdued local demand as a result of restrictions relating to Covid-19. Other rebar suppliers to the UAE market, including suppliers from Oman, are expected to announce similar price increases.
Improving demand in June and positive expectations for July are considered to be the main reasons for the rebar price uptrend. Some sources expect consumption to reach 150,000 mt of rebar this month with a further moderate increase in July. In addition, scrap and iron ore price levels remain firm and high globally, supporting mills' positions, SteelOrbis understands.
It is also worth mentioning that, although the Covid-19 restrictions are being maintained in the Abu Dhabi emirate where ESI is located, there has not been any impact on the mill's rebar deliveries to outside regions as steel has been exempted from the restrictions as a vital product, SteelOrbis has learned from market sources.
$1 = AED 3.67