Posted on 03 Sep 2024
Secondary rebar suppliers in the United Arab Emirates and the Omani major are eyeing UAE market rebar price increases of AED 50-73/tonne ($14-20) on August transaction prices.
Qatar Steel's UAE subsidiary, which kept its rebar prices on the high side among the secondary mills in August at AED 2,160/t delivered on LC 90 days, rolled over for September, setting a benchmark.
Dubai buyers, in particular, appear to be receiving offers for rebar at and above AED 2,160-2,170/t delivered on LC 90 days for September deliveries. Meanwhile, buyers in Al Ain and Abu Dhabi seem to be accepting Abu Dhabi-made secondary rebar at and above AED 2,210/t due to the regulation stipulating local – Abu Dhabi – product use, Kallanish notes.
One re-roller is meanwhile reported offering rebar at AED 2,230-2,250/t delivered on LC 90 days, but receiving very little interest.
So far, rebar retail prices have increased by AED 25-30/t on-week to AED 2,310/t for benchmark mill material and AED 2,190-2,210/t for secondary mills, both on a credit and delivered basis. However, some traders in Abu Dhabi are quoting rebar at AED 40-60/t higher than the indicated average prices for both benchmark and secondary mill material.
Hamriyah Steel is heard targeting 40,000-50,000 tonnes of rebar supply in September. Traders were visited last week by a representative of Hamriyah, explaining the producer’s growth plans and how it intends to supply the market. The Qatar Steel parent company is supplying some supplementary rebar sizes that its Dubai rolling mill cannot provide, but not large volumes.
"We have tried to increase August list prices by AED 70/tonne, but the market will only accept an increase of AED 50/t over August transaction prices. That seems to be the reality. Qatar Steel's price roll-over, if true, sets a benchmark and is the biggest obstacle to increasing by more than AED 50/t," comments a sector participant.
The Omani and local UAE wire rod producers have slightly increased their wire rod quotes to $585-590/t delivered against LC 90 days. In August, the newcomer to the UAE wire rod market concluded the lowest-priced deal in the market, at $565/t ex-mill against cash.
Source:Kallanish
