Posted on 17 Aug 2021
United Arab Emirates mills have kept 8-32mm domestic rebar prices more or less unchanged this week after discounting them to AED 2,650-2,752/tonne ($721.5-749/t) ex-works last week due to low demand. Buyers however anticipate more discounts.
This week, transaction prices are expected to vary from AED 2,650-2,750/t ($721.5-$742/t).
Buyers are showing little intention to make a deal since they anticipate Emirates Steel will announce September-delivery prices by the end of this week. Trade flow has no pulse at present, one buyer says of the current situation.
Last month ESI decreased its rebar price for domestic August deliveries to AED 2,956/t ($805) ex-works from AED 3,012/t ($820) valid for July (see Kallanish passim).
Market participants expect ESI to close deals this week at AED 2,750/t, AED 262/t lower than official quotes, subject to volumes.
Saudi Arabia's biggest producer Sabic's 12-32mm rebar and wire rod prices remain unchanged on-week at SAR 3,100/t ($826.6) and SAR 3,300/t ($880) respectively. A discount of SAR 200-290/t is given to buyers who fulfil pre-agreed quotas, say local sources.
In Iran's domestic market, meanwhile, mill prices for 12-32mm A3 rebar are at IRR 155,045/t ($575) ex-works, excluding 9% VAT. Export quotes for the same product are at $655/t fob, while to Iraq this price includes delivery to the border. The government controls prices in Iran to offer the domestic market lower prices than export markets.
In Egypt’s domestic market, mills are offering 12-32mm rebar at EGP 12,553-12,788/t ($800-$813.4/t) ex-works, excluding 14% VAT. In export deals, a discount of up to 5% from offers can be negotiated, following the decline in billet prices, say local market sources. The 10% safeguard duty on billet imports continues to make re-rollers less competitive in the export market.
Source:Kallanish
