Emirates Steel Arkan (ESA), the UAE's largest steel producer and market leader, has announced its rebar pricing for May production. According to the company's statement, it has chosen to maintain prices at the current level for the third consecutive time since demand and trading activity have remained stable. However, according to remarks made by market participants, the recent harsh weather conditions have kept prices stable and, while demand has declined somewhat, stock levels have remained quite high.
“Demand is coming back to normal levels, but inventory levels are high due to the heavy rainfall,” a UAE trader commented to SteelOrbis.
ESA's domestic rebar offers have remained stable at $745/mt (AED 2,735/mt) for May output, while its rebar offers at $747/mt (AED 2,743/mt) CPT Abu Dhabi and $749/mt (AED 2,750/mt) CPT Dubai, Sharjah and the Northern Emirates with 90-day LC payment have been kept unchanged.
Furthermore, according to market sources, retailers' current feasible levels in the UAE for ESA origin materials are at AED 2,450/mt ($667/mt) CPT, and for non-ESA materials are at AED 2,350/mt ($639/mt) for 90-day LC payment.
On the other side, Hamriyah Steel has yet to disclose its rebar prices, which will likely follow the same trends as ESA’s prices. Arabian Gulf Steel Industries, another local rebar producer, has announced a rebar price of $626/mt (AED 2,300/mt) ex-works, in line with its previous offer.
$1 = AED 3.672