Some UAE-based wire rod producers have decided to provide discounts for their July production, taking into account the rather low demand from local customers. Other mills are foreseen to follow suit, although some of them are supported by export sales in terms of volumes.
According to sources, local producer Emirates Steel Industries (ESI) is offering wire rod for the local market at $800/mt ex-works, down by around $20-30/mt over the past month. In the meantime, Qatar Steel FZE and United Steel Company (USC) are in the market with $840/mt ex-works and $830-840/mt ex-works, respectively. “The demand is extremely low and we prefer to export at lower levels in order not to spoil the market here,” a source told SteelOrbis. Still, buyers expect the other producers will come closer to ESI’s domestic level.
In the export segment, prices for distant markets have been fixed in deals at around $800/mt FOB lately. Mainly, buyers from the EU and East Africa have been targeted. In addition, Oman has continued to buy wire rod from the UAE, purchasing at least 10,000 mt, with the latest prices estimated at around $840/mt CPT.