Gulf Cooperation Council rebar market activity is improving, particularly in the United Arab Emirates. October sales in the retail segment are much better than in September, and sector participants believe prices have bottomed. A mild uptick is anticipated in November, Kallanish notes. 

Mills in UAE – the second-largest market in GCC – have stopped offering and supplying rebar in the domestic market in anticipation of the November hike. A Saudi Arabian buyer bought random-length rebar at a very low price from UAE. Also, rebar producers in UAE were heard concluding rebar deals for the Saudi market. Despite the 15% import duty, UAE-origin delivered rebar prices are at below Saudi tier-three mills' ex-works rebar prices of SAR 2,575-2,600/tonne ($686-693).

In the UAE domestic market, Union, Hamriyah and Oman's Jindal Shadeed are refusing to offer and are not taking orders for October rolling. Also, Emirates Steel Arkan (ESA) is heard not accepting extra orders for October.

In the retail segment, ESA rebar is transacted at AED 2,200-2,240/t ($599-613) and non-ESA rebar is at AED 2,100-2,140/t ($572-583), both delivered. The lower margin is for cash payments, and the higher is on a credit basis for 120-150 days.

"In UAE, mills are not hungry for new orders. We do not offer and take new orders. We believe prices touched the bottom curve, and a mild increase is anticipated,” explains a senior mill official.

In Oman, rebar prices have improved, but demand is still not satisfying. Rebar in the secondary, retail market is available at OMR 235/t ($611) delivered, while mills' wholesale prices are at OMR 225-230/t ex-works. Traders are still not softening the retail prices they agreed on during a meeting two weeks ago.

Oman's largest producer, Jindal Shadeed, has resumed rebar shipments to Saudi and has already dispatched 3,000-4,000 tonnes of rebar in October. Shadeed has a sales team residing in Saudi Arabia, and the company dispatches round billet and rebar to that market.

In Bahrain, the market is slow but slightly better than in September. A supplier in UAE, for 10-32mm sizes, has softened its rebar price by AED 70/t ($19) to AED 2,300/t delivered to Bahrain.

Rebar is transacted at BD 250/t ($665) delivered in the retail market, while Emirates rebar is available at AED 2,280-2,300/t ($621-626) delivered to Bahrain. One UAE supplier is charging an extra $25/t for 8mm rebar, whereas a local re-roller in Bahrain transacted in the last round of sales at BD 245/t ($652) delivered across all sizes. Local rebar is expected to slide to BD 240/t delivered within Bahrain.