Posted on 12 Dec 2023
Retail rebar prices in the United Arab Emirates are increasing after benchmark mill Emirates Steel skipped December's spot and project sales, encouraging traders to lift their tags. Secondary mills do not take new rebar orders, claiming they are sold out, assuming that rebar prices will rise for January deliveries. Rebar sales are reportedly going well, and cut and bend facilities are running at high capacity, notes Kallanish.
In December the benchmark mill skipped the project and spot sales schemes, which offer discount prices for limited volumes to its MoU-signed customers, aiming to secure 60% market share. This move (skipping December) improved retail quotes and gave a message to the market that next month rebar prices will increase.
Sector participants anticipate that the market maker will increase its rebar prices for January delivery by around AED 112/tonne ($30) over December, which should be announced in the middle of next week.
This week in the UAE, delivered corporate retail rebar prices on credit are at AED 2,480-2,510/t ($675-683) for the benchmark mill and AED 2,350-2,370/t ($640-645) for secondary mills, including Oman's Jindal Shadeed.
"Rebar sales are good, and new projects are in the pipeline in the UAE. We expect rebar consumption and prices to rise sharply in the new year," says a senior mill official.
All prices exclude 5% VAT.
Source:Kallanish
