Abu Dhabi-based Emirates Steel (ESI) has reduced its rebar price by AED 54/tonne ($14.7) from the previous month to AED 1,845/t ($502) for February deliveries.
United Arab Emirates market participants say the reduction is due to slow demand. “They are trying to hurt re-rollers,” one Dubai-based trader says of ESI’s move. Supply from the steelmaker coupled with tonnage from other UAE and Omani mills comes to around 325,000 t/month versus a demand of 280,000 t/m, he adds.
The price reduction is “… in line with the market dynamic,” a source close to ESI says. A local re-roller source observes: “We cannot compete with ESI but we must do it.”
Last week UAE implemented the long-touted customs duty increase on rebar and wire rod imports to 10% (see Kallanish passim). However, this is not expected to bring significant change as the tonnage of rebar imported into the UAE from outside the Gulf Cooperation Council these days is minimal.
Dubai-based re-roller Conares, meanwhile, also reduced its rebar price for February deliveries, by AED 51/t to AED 1,835/t ex-works.