Posted on 21 Nov 2019
Abu Dhabi-based Emirates Steel has increased its rebar price for the domestic market by AED 132/tonne ($36) on-month for December deliveries to AED 1,785/t ($486) ex-works. This more than offsets the AED 85/t on-month drop for November deliveries.
Besides the increase in international scrap and billet prices over recent weeks, the rebar price hike has been driven by improved market conditions in United Arab Emirates. “Business is a bit better,” a Dubai-based trader tells Kallanish. “I am seeing green shoots of a slight recovery. Let’s hope it’s sustained.”
Another UAE-based trader agrees, saying: “Demand is increasing.” However, he adds: “It will go up till the end of December and then January will be slow again.”
ESI’s price announcement for November deliveries was previously announced in the market as being a roll over from October. However, Kallanish confirms the November price in fact dropped AED 85/t on-month to a 2019-low of AED 1,652/t. Local market sources previously said the market was under increasing pressure from weak demand and increased competition from Omani suppliers.
ESI’s Dubai-based re-roller rival, meanwhile, is quoting AED 1,782/t ex-works for December deliveries.
UAE crude steel output, of which almost 90% is accounted for by ESI, rose 4.2% on-year in January-September to 2.46 million tonnes, according to worldsteel data.
