Amid the usual seasonal slowdown during the summer, the UAE’s rebar market has maintained relative strength, prompting Emirates Steel, the country’s leading steel producer, to keep its prices unchanged for August.
The price fixing, which was anticipated by many market participants, reflects the company’s strategic approach to maintaining demand levels and protecting its market share amid escalating regional competition and fluctuating demand.
The company officially announced the extension of its rebar offering for August, setting the price at AED 2,480 per tonne (equivalent to USD 675) ex-works (EXW). A surcharge of AED 92 per tonne (USD 25) will be added to sizes with a diameter of 8 mm, according to a buyer who spoke to Metal Expert. This marks the sixth consecutive month the company has adopted this pricing policy.
In contrast, other local steel mills have yet to announce their official offers for August, amid mixed market expectations. While some sources indicate that these mills may follow the same stabilization approach, others believe that some producers are considering narrowing the price gap with Emirates Steel, which could pave the way for shifts in pricing mechanisms in the near term.
Despite the sluggish summer season, the local market performed well in July, with all major companies achieving strong sales. Emirates Steel sold approximately 200,000 tons, followed by an integrated plant from the Sultanate of Oman with approximately 85,000 tons, while another Omani supplier concluded deals to supply at least 20,000 tons of long products. Total UAE rebar consumption in July is estimated to have exceeded 400,000 tons.
It should be noted that all announced prices do not include the 5% value-added tax.
1 US dollar = 3.673 UAE dirhams
