Emirates Steel Industries (ESI), one of the key decision makers in the United Arab Emirates (UAE) rebar market, has finally announced its new domestic price for October production. The company has dropped its official rebar offers by $59/mt (AED 216/mt) compared to the previous month, down to $473/mt (AED 1,737/mt) ex-works. Other local producers have traditionally followed the same policy. Currently, rebar from Hamriyah Steel and Union Iron & Steel is officially available at $472/mt (AED 1,732-1,735/mt) ex-works, SteelOrbis has learned.
The domestic rebar consumption volume in the UAE in September is estimated by the local players at around 150,000 mt, including imports. In particular, according to the sources, Omani mills sold around 20,000 mt in the previous round at $490-495/mt (AED 1,800-1,820/mt) CPT for 90-day payment. “Oman will sure drop prices by same AED 200/mt or even more. The market is not good,” a trader stated. Overall, producers mainly do not expect any significant demand improvement in October, while some slight rise is possible in November, SteelOrbis understands.
The announced prices in the rebar segment provide some clarity for the square billet market as well. However, some players believe that the actual sales price for rebar will be lower than the official level, and so there will be some additional pressure on the billet side. “I think the UAE will be targeting definitely below $375-380/mt delivered,” a local source told SteelOrbis.