News Room - Steel Prices

Posted on 04 Jul 2023

UAE traders observe healthy demand after Eid holiday

The United Arab Emirates rebar market has started July with healthy demand after the long Eid holiday. Traders hope rebar retail prices will increase slightly, particularly for the benchmark mill material, Kallanish notes.

This week, unchanged from pre-Eid price levels, average rebar retail quotes are at AED 2,390-2,395/tonne ($650-652) for the benchmark mill and AED 2,280-2,320/t for secondary mills, including Jindal Shadeed. These are on a credit and delivered basis. On a cash basis, AED 20/t is deducted from the lower margins.

The UAE's secondary mills and Oman’s Jindal Shadeed set their July-delivery wholesale rebar tags at AED 2,200-2,240/t delivered on a 90 days credit basis. Some negotiations are still ongoing to conclude rebar deals at AED 2,170/t delivered, and these may take until the weekend to finalise. Imported Saudi- and Iranian-origin, as well as local billet price offers increased by AED 39.38-55/t ($8-15). Rebar re-rollers are thus pushing to reflect the billet price increase in rebar quotes for July deliveries.

Amid the absence of Hamriyah Steel from the market, Qatar Steel FZE has increased its sales channels and price, setting the second-highest rebar price after the benchmark mill in the UAE domestic market.

"When we started the week after the long Eid holiday, we observed quite good demand. There is no summer mood or pause in rebar consumption volumes and we are cautiously optimistic for July and August," opines a buy-side source. 

Jindal Shadeed is heard to have increased its rebar volumes target for the UAE market to 35,000-40,000 tonnes after its sister company in Oman, Sohar Steel, became fully operational.

The UAE benchmark mill also received 95,000t rebar orders for July. If it cannot reach a 60-65% market share, it may come to the market with a second round of sales – so-called project sales – at prices much lower than its July-delivery list values of AED 2,442/tonne ($665) ex-works, AED 2,450/t ($667) cpt Abu Dhabi and AED 2,458/t ($669) cpt Dubai, Sharjah and Northern Emirates theoretical weight, payable by LC 90 days after delivery. 

Notably, the benchmark mill's rebar in the retail market, after deducting the rebate, is being sold almost at the same or slightly below its wholesale price.

All prices exclude VAT.

Source:Kallanish