Emirates Steel (ESI) has decreased its rebar price to AED 2,956/tonne ($805) ex-works for August deliveries from AED 3,012/t ($820) in July, local market participants tell Kallanish.

The reduction factors in slowing construction activity over the summer, since August will be the hottest month of the year. If demand does not pick up during the month, a further price reduction is highly likely.

Although its official July price was AED 3,012/t, the steelmaker later announced a discount to AED 2,937/t, and in larger volumes an extra discount to AED 2,797/t was available for rebar, local sources explain.

Abu Dhabi-based ESI is a 3.5 million tonnes/year crude steel capacity steelmaker producing rebar, wire rod and heavy sections.