Posted on 08 Aug 2023
Rebar traders in Dubai and Abu Dhabi are enjoying price stability. However, in the northern part of United Arab Emirates, some traders are selling secondary mills’ rebar against cash payment at as low as AED 2,170/tonne ($590/t) delivered to buyer's yard. Nevertheless, these transactions are not spoiling the general rebar trade environment, notes Kallanish.
This week in Abu Dhabi and Dubai, delivered rebar retail prices are unchanged on-week at AED 2,370-2,400/t for the benchmark mill and at AED 2,260-2,280/t for tier-two mills, both on a credit basis. Against cash payment, AED 20-40/t is deducted from the lower margin, subject to quantities. All prices exclude VAT.
Most rebar producers are fully booked or have reached their targeted August allocation.
This week, traders are observing moderate demand; enquiries are there, but volumes have slightly inched down versus July, although they are better than last week.
"The benchmark mill has retained its rebar price unchanged since June, bringing price stability to the market. Traders showed their red line to the producers – that they wanted regular and consistent supply and to avoid price volatility. If a mill exits the domestic market to enjoy better margins in export markets, its return to the local market is not easy," comments a buy-side source. "August is the hottest month of the year where you anticipate the lowest rebar sales; from September onwards, rebar demand and consumption typically rise."
"Not affected by the absence of regional or global demand, we anticipate this price stability in UAE would continue in September driven by the construction sector's growth trend," he adds.
Source:Kallanish
