Abu Dhabi-based Emirates Steel (ESI) has maintained its previous month’s rebar price of AED 2,007/tonne ($546.5) ex-works for April deliveries.
“There’s been no big change in the market” since ESI’s previous price announcement in February, a hike of $44/t, a source close to the firm tells Kallanish.
Traders also indicate that increased competition from an Oman-based steelmaker is preventing any potential further price hikes. “They are increasingly worried about the local competition, especially from Oman,” a Dubai-based trader says of ESI. The Omani steelmaker ships on average 50,000 t/month of rebar to UAE. Deliveries in February and March are reported to be a combined 75,000t. “It is giving very competitive prices compared to others,” a second trader observes.
The traders say buying is likely to pick up now that prices are showing some stability. There is demand in the market, but buyers were previously unwilling to risk ordering significant tonnages because prices were fluctuating, they add.
Dubai-based re-roller Conares, meanwhile, has also maintained its rebar price at AED 2,000/t ex-works. Sharjah-based re-roller Hamriyah Steel has also rolled over its rebar price of AED 2,005/t ex-works.
ESI said last month it expects a slowdown in the regional construction sector and drop in sales prices to be among the challenges it will face in 2019 (see Kallanish passim). The Abu Dhabi-based steelmaker sold 2.51 million tonnes of finished product on the domestic market and 631,000t for export to 40 countries in 2018.