Posted on 30 Jan 2024
Rebar retail prices in the United Arab Emirates are not improving, although last week the benchmark mill announced an increase in February-delivery mill prices, up AED 55/tonne on January to AED 2,735/t ($745) ex-works.
In the retail segment, average transaction prices for rebar on a credit basis – not less than 120 days – remain at AED 2,580-2,600/t delivered for benchmark mill and AED 2,470-2,490/t delivered for secondary mill – including the Omani mill – material, notes Kallanish.
A senior mill official explains: "A few contractors sealed agreements with some traders to hold two-month rebar purchase prices, which is a constraint on retail quotes."
Following the market maker's announcement, Qatar Steel FZE acted quickly and announced last week its February quote at AED 2,395/t delivered on credit, setting a threshold for secondary mills. Other rebar suppliers in the UAE market have set their February quotations on 90-day credit at AED 2,395-2,435/t.
Negotiations between secondary mills and traders to finalise February orders will continue until mid-week.
Source:Kallanish
