The largest steel producer and market leader in the United Arab Emirates (UAE), Emirates Steel Industries (ESI), has issued its domestic wire rod price for June shipment. Other producers in the Gulf Cooperation Council (GCC) region have subsequently followed. Overall, demand for wire rod in the region remains subdued, in particular, on the back of increasing uncertainty regarding the future trend of raw material and steel prices globally.
Accordingly, the current offers for wire rod produced by Emirates Steel Industries (ESI), the key producer in the UAE longs market, to the domestic market have been voiced at $890/mt ex-works, for June shipment. United Steel Company has announced its offers at the same level as ESI’s price, i.e., at $890/mt ex-works. “Demand is still far from satisfactory. Contractors are ordering minimum quantities, only thinking that the prices will drop soon,” an UAE-based trader stated. According to market insiders, Emirati retailers have traded wire rod domestically at $850/mt, delivered.
In the meantime, Saudi Arabia’s largest steel producer and market leader, Hadeed, has also issued its new domestic longs offers lately. Accordingly, aiming to offset higher input costs, the company has increased its wire rod price by $80/mt (SAR 300/mt) to $853/mt (SAR 3,200/mt) CPT, while the price for rebar has risen by $93/mt (SAR 350) to $800/mt (SAR 3,000/mt) CPT. Meanwhile, wire rod from Egypt is said to be available at around $855-865/mt CFR Jeddah, for July-August shipment.
$1 = AED 3.673
$1 = SAR 3.75