On January 13, UAE-based Emirates Steel Industries (ESI), the leader in the UAE’s rebar market, has announced its much-awaited rebar offers for February production. The company has announced a price increase compared to the previous month, but has set its offer at a much lower level compared to that announced by Hamriyah Steel just a day earlier.
Accordingly, the company’s rebar is now available at $715/mt (AED 2,625/mt) ex-works, up $90/mt (AED 330/mt) over the past month. Market insiders report that the price is valid within the first 15 days, with the option of a further revision afterwards. “They are aiming for another increase but did not want to reflect a big difference in one single time”, one of the key UAE-based traders commented. A day earlier, Hamriyah Steel announced its offer at $749/mt (AED 2,750/mt) CPT, up by $122/mt (AED 450/mt) from the previous month. Some sources believe the high price level may be the result of some production cuts by the mill, though this information has been denied. The supplier is expected to take a wait-and-see stance for a couple of weeks until some further revisions, if any at all.
In the meantime, Union Iron & Steel has announced its rebar price for February production at the same level as ESI’s offers - at $715/mt (AED 2,625/mt) ex-works, while the rebar produced by Conares is available at $705/mt ex-works, SteelOrbis has learned.
Sources expect that consumption in the first quarter of 2021 will be moderate at 150,000-180,000 mt per month, with no significant changes compared to past months.