Posted on 12 Sep 2023
The United Arab Emirates market maker closed rebar spot sales – the so-called second round of bookings – last week at around AED 2,200/tonne ($599) ex-works for limited volumes, to reach 60-65% of domestic market share.
Rebar traders in northern UAE, the Ajman and Sharjah districts, who closed deals with Omani and local mills at and below AED 2,180/t ($594) delivered, are offering rebar in the retail markets at AED 2,210/t against cash. This is spoiling the corporate rebar retail market even in Dubai and Abu Dhabi, Kallanish notes.
"Some small-volume rebar sales in the north are giving the wrong message to the market, and traders are asking for discounts from the mills, referencing rebar prices in the north," opines a senior mill official.
This week, the last week of the school holidays, delivered rebar on credit terms in the retail market is being offered at AED 2,250-2,290/t for secondary mills, including the Omani major, and at AED 2,360-2,400/t for the UAE benchmark mill.
"The market is reasonably strong, and selling prices have maintained the stability of the last three months. Schools will start next week, and employees will return to work. As soon as the decision-makers, the executives, start working, it will accelerate business activity and rebar consumption,” comments a buy-side source.
All prices quoted exclude 5% VAT.
Source:Kallanish
