The UAE-based steel producer Emirates Steel Industries (ESI) announced its domestic rebar price for September production. The supplier has decided to decrease the level after two months of stabilization, taking into account low domestic end-user demand and therefore slow daily business.
On August 25, ESI announced its price for 12-400 mm rebar at $640/mt (AED 2,351/mt) ex-works, down by $45/mt (AED 165/mt) over the month. The other domestic rebar producers in the UAE are expected to announce their prices a bit later, but traditionally in line with ESI levels.
Despite the provided discount, the UAE’s domestic rebar sales are expected to be done at even lower price levels in the coming weeks, taking into account that the expected recovery of domestic consumption is foreseen in late October-November. In the previous round of sales, the workable rebar prices levels were at $600-613/mt (AED 2,200-2,250/mt) CPT with 90-day letter of credit and at $608-619/mt (AED 2,230-2,270/mt) CPT ex-works, LC at sight.
In the billet segment, the offers in the region are expected to be also under pressure, particularly the ones coming from Iran. While last week the suppliers increased their offers to $530/mt CFR, the new levels might settle at $480-500/mt CFR, local sources expect.
$1 = AED 3.673