Posted on 22 Oct 2024
Emsteel, the benchmark steel mill in the United Arab Emirates, could raise domestic rebar prices for November deliveries this week, multiple market sources tell Kallanish.
Market participants anticipate the mill could increase domestic straight rebar prices by AED 92-110/tonne ($25-30/t) from the October price of AED 2,442/t ex-works.
UAE retail rebar market sales will close at 300,000-310,000 tonnes in October, according to one industry participant.
"Relying on healthy and growing demand, the benchmark mill may follow expectations coupled with better financial targets in the second half of the year. Export prices have been very low due to international prices led by China," he notes.
"The company is looking for better revenue and profit in the second half as the Q2 interim results were not satisfactory and dragged down the H1 profit versus last year same period," he adds.
Some traders have already raised their retail rebar prices, while others have stopped selling until there is more clarity.
Retail rebar prices are at AED 2,230-2,240/t for secondary mills' rebar and AED 2,330-2,350/t for the benchmark mill on a delivered and credit basis, excluding 5% VAT. Both of these price indications are up AED 10-20/t on the low end of last week.
A vessel carrying billet is reported to be awaiting permission to unload at Hamriyah port. It is believed by market participants that this cargo belongs to Hamriyah Steel.
Kallanish learns from sources that Emsteel has already begun discussions with its rebar distributors on the terms and conditions of next year's MoU agreements.
Source:Kallanish
