ESI raises rebar on costlier billet, raw materials
Abu Dhabi-based Emirates Steel (ESI) has increased its rebar price by AED 97/tonne ($26) from the previous month to AED 1,872/t ($510) ex-works for August deliveries, market participants tell Kallanish.
The increase has been driven by firmer billet prices, which are being supported by tight availability in most regions. CIS billet quotes are now heard at a minimum of $420/t fob Black Sea. Moreover, strong Chinese demand has driven iron ore up to around $65/t cfr China. This, as well as strong Turkish domestic rebar demand, has had a knock-on effect on scrap, which remains hovering just below $300/t cfr Turkey.
There is also “…good demand for steel [in UAE],” says a UAE mill source. “The market is welcoming such an increase.” The absence of Qatar Steel rebar in the UAE market, as a result of the diplomatic spat between Qatar and Saudi Arabia and its allies, is also supporting higher prices.
Despite the price hike there is little danger of interest in Turkish-origin rebar imports because local mills have consolidated their foothold in the market. “[Turkish mills] know that with secondary mills – Jindal, Hamriyah and Conares – now well established, local mills have capacity to serve the UAE market,” a Dubai-based trader observes. “The old order is over.”
After various discounts ESI’s new rebar price comes to AED 1,835/t ex-works, meaning Turkish mills would need to offer rebar at around $466/t cfr Dubai theoretical weight to be competitive in UAE, a trader says.
Dubai-based re-roller Conares is quoting rebar at AED 1,865/t ex-works for August and September deliveries, while Union Iron & Steel is offering at AED 1,872/t ex-works.
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Anonymous
Very good overview of the weekly steel market.
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