Wire rod demand in the domestic markets of Gulf Cooperation Council (GCC) countries has improved compared to the levels in the previous months and is moderate at present. Still, the trade is not quite enough to allow prices to rise significantly.
Local offers in the UAE have been reported at $470-480/mt CPT as workable levels, while a month earlier deals were being closed at $460/mt CPT at the lowest. A small sale for ex-stock wire rod was discussed in the market at $483/mt CPT. The allocation of wire rod still remains limited in the UAE as imports are difficult due to import tax. In addition, local company United Steel Company based in the Fujairah emirate remains idled in terms of production, though its production may be restored at the end of August or in September, SteelOrbis understands.
In Saudi Arabia, Hadeed’s price is at $520/mt CPT for September production. Some activity has been seen in the import segment, from Egypt specifically as the country is exempt from import tax, being an Arab state. A deal at $497/mt CFR Jeddah was reported at the end of last week. “Local demand here is ok, not good not bad,” a Saudi Arabia-based trader told SteelOrbis. Offers from the UAE to Saudi Arabia have been voiced at $520/mt (AED 1,920/mt) CPT Dammam/Riyadh for September shipment.
$1 = AED 3.67