Abu Dhabi-based Emirates Steel (ESI) has rolled over from the previous month its rebar price for the domestic market of AED 2,295/tonne ($625/t) ex-works for July deliveries.
The producer kept the price unchanged as the international market has remained relatively stable since ESI's last price announcement towards the end of May. This was an AED 72/t hike in anticipation of the Gulf Cooperation Council’s rebar import duty increase to 10%.
Although this hike was implemented in mid-June, the threat from rebar imports remains minimal and the UAE market is experiencing its typical summer construction activity slowdown. “We’re just coming out of the traditionally slow Ramadan period,” a Dubai-based trader tells Kallanish. “We will have 2-3 months of slow activity,” adds a UAE mill source.
ESI’s Dubai-based re-roller rival Conares has also maintained its previous month’s price of AED 2,290/t ex-works for July deliveries.
United Arab Emirates’ crude steel output, the vast majority of which is accounted for by ESI, rose 3.8% on-year in May to 299,000t, bringing to an end seven consecutive months of decline, according to worldsteel data. January-May output, however, was still down -10.6% to 1.31mt.