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Kallanish Kallanish

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July, 19th 2019

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JUN 25
16:57

Emirates Steel keeps rebar price unchanged for July

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Abu Dhabi-based Emirates Steel (ESI) has effectively maintained its previous month’s rebar price of AED 1,881/tonne ($512) excluding 5% VAT for July deliveries, local market sources tell Kallanish.

ESI’s June-delivery rebar price was officially at AED 2,007/t but the steelmaker offered discounts last month of AED 126/t in order to quicker shift stock. This month ESI has rolled out July deliveries under the radar, says a Dubai-based trader. “They did not have a price announcement, they just informed their traders of the price,” he observes.

A source close to ESI says the market has been slow since April and does not warrant a price adjustment. High iron ore prices are likely to be preventing ESI’s rebar price from declining further, Kallanish notes.

Sharjah-based re-roller rival has also kept its rebar price unchanged for July deliveries at AED 1,880/t.

United Arab Emirates, where almost 90% of output is accounted for by ESI, saw crude steel production fall -2.4% on-year in May to 291,000t. However, January-May production was still up 4.5% on-year to 1.37 million tonnes. ESI chief executive Saeed al-Remeithi said last week he expects steel demand in the Arab world to start recovering next year after a difficult 2019 amid a construction sector slowdown.