In United Arab Emirates, rebar consumption is expected to improve in November, with 12-32mm diameter rebar prices, both retail and wholesale, surfacing for November deliveries.

“October was better than September with 155,000-165,000 tonnes of rebar sales by the mills,” comments a local sector participant.

This week, re-rollers’ rebar transaction prices are at around AED 2,410-2,430/tonne ($656-661) ex-mill, whereas Emirates Steel has set its rebar price at AED 2,490/t ($678) ex-works (see Kallanish passim). Oman-based Jindal Shadeed is quoting rebar at AED 2,410-2,430/t cpt UAE. Prices are depending on volume, payment terms, and client's classification, Kallanish notes.

Payment is 90 days after the invoice date and prices are based on theoretical weight. However, ESI applies an AED 35-75/t discount on the quotation upon pre-agreed quotas in the domestic market.

On the retail side, ESI’s rebar is sold at AED 2,550-2,575/t and other mills’ product at AED 2,470-2,490/t delivered, depending on payment and tonnage.

“The retail part is not lucrative because in October even small traders bought at lower prices and in return they are offering to the end-users with low-profit margin, which spoils our appetite,” comments a sector participant.

“In November, the market size is expected to reach 165,000-170,000 tonnes. ESI is ambitious with a minimum 70% rebar sales target like they achieved in October. They target 105,000-110,000 tonnes of rebar sales. Projects are on track and in six weeks' time, consumption will boost, and in January we are expecting 180,000 tonnes of rebar market in the UAE. Cash flow is weak because clients are not paying although payment is agreed on 120 days after the invoice date,” says another source.

Induction furnace billet prices have inched down to $640-650/t cpt UAE from last week’s $655-660/t. The electric arc furnace billet import market is pegging at around $650/t cfr UAE.

Mills are searching markets for rebar exports to Hong Kong, Singapore and Africa. For billet, the EU and other markets are under scrutiny. After the tariff agreement between US and EU officials was made last weekend, all market participants have a positive sentiment. However, the interpretation and consequences of the agreement for the Middle East region are still unknown.