Domestic wire rod prices in the UAE have remained relatively stable over the past month, in line with the trend seen in the rebar segment. Stocks have been estimated at above medium levels, while project activity in the country has been insufficient, sources report. In such a situation, some local wire rod producers remain rather active in their exports, where demand has been decent and prices have been somewhat higher than domestic prices.
According to sources, local wire rod prices in the UAE are at $710-715/mt ex-works/CPT for February production, while $10-15/mt discounts are considered applicable in the case of large orders. Some traders are reported to be trading wire rod at $705-710/mt ex-warehouse for stock material.
Generally, local demand for wire rod in the UAE is considered insufficient and so some mills remain concentrated on cooperation with foreign buyers. One of the producers has been selling at up to $730/mt FOB, mainly to the European markets, while another has been selling to certain African countries at $10/mt lower price, but for smaller wire rod coils, SteelOrbis has learned. Mostly distant markets are targeted, given the 20 percent import duty still effective in Saudi Arabia.
Subdued demand for rebar and wire rod in the UAE has been having a negative effect on the regional billet trade. Offers from Oman have decreased to $610-620/mt CPT UAE, down around $10-15/mt since earlier in January. Some re-rollers have been aiming to book at $600/mt CPT. In the meantime, the lowest offers are heard for ex-Iran material, at $580-590/mt CPT, SteelOrbis has learned.