Price Increase for January
Emirates Steel (ESI), the steel division of Emsteel in the United Arab Emirates, has announced a price increase for its January-rolling 10-40mm straight rebar (BS4449:2005 grade GR500B). The domestic list prices have risen by AED 50/tonne ($13.6) compared to December. The updated prices are as follows:
- AED 2,652/tonne ($722) ex-works
- AED 2,657/tonne cpt Abu Dhabi
- AED 2,667/tonne cpt Dubai, Sharjah, and Northern Emirates
Premium Charges and Payment Terms
The company will apply a AED 92/tonne ($25) premium for 8mm diameter rebar over the standard list price. Payment for these transactions will be conducted under a 90-day letter of credit (LC).
Continued Strong Demand in 2025
An insider from Emirates Steel commented that the strong demand for rebar is expected to extend into the first quarter of 2025, driven by positive market trends and rising international scrap prices. This increase in net prices is aligned with the current supply and demand balance in the market.
Impact of Rising Property Prices
The sharp rise in UAE property prices indicates growing construction demand, which has contributed to higher material costs, including steel. As property values increase, the cost of essential building materials, such as rebar, naturally adjusts to reflect this demand.
Market Anticipation
Local rebar suppliers, including Oman-based Jindal Shadeed, which supplies 60,000-65,000 tonnes of rebar to the UAE market each month, are expected to announce their new rebar quotations this week. Jindal’s senior officials have suggested that the company will likely follow Emirates Steel’s lead in adjusting prices.
This price hike underscores the strong demand in the UAE’s steel market, spurred by construction activity and rising property values, signaling continued upward pressure on rebar prices.
