- Rebar market stable but underlying strain visible
- Wire rod gains on supply tightness; Saudi rebar extends uptrend
The UAE domestic scrap market remains steady to firm, with BigMint assessing HMS (80:20) processed at AED 1,040/t ($283/t) DAP Abu Dhabi, up AED 2/t ($0.5/t) w-o-w. Market indications place HMS processed at AED 1,040-1,050/t ($283-286/t), while shredded scrap is heard at AED 1,075-1,125/t ($293-306/t) DAP, reflecting a stable-to-firm price trend supported by steady buying interest.
Market participants noted that demand remains largely stable, supported by regular procurement from integrated mills, though without any aggressive restocking. A trader said, “Prices are holding steady as mills continue routine buying, but there is no strong push from the demand side.”
UAE rebar market stable on surface
The UAE rebar market continued to show stability, with benchmark prices around AED 2,675-2,700/t ($729-736/t) DAP. Major integrated producers are maintaining steady supply, supporting market balance in the near term. However, concerns are emerging over sustainability, particularly heading into June when maintenance schedules and raw material constraints could impact output.
A market source noted, “Large mills are still supplying full volumes, but pressure is building underneath due to billet constraints.” Smaller re-rollers continue to face difficulties due to limited billet availability, restricting their operating rates. Meanwhile, an IF-based producer is expected to supply around 40,000-50,000 t, helping stabilise supply.
Wire rod prices rise on tight availability
The UAE wire rod market showed an upward trend, with prices increasing to $680-690/t CPT UAE for June deliveries. The rise is driven by tight supply and higher production costs, with limited import competition.
A producer source shared, “There is no Chinese material in the market, and regional supply is also constrained.” Producers are prioritising rebar production over wire rod due to better margins, further tightening availability. Demand sentiment remains mixed, with some participants reporting slow activity while others see stable consumption.
Saudi rebar extends gains amid tight supply
In Saudi Arabia, rebar prices continued to rise, with benchmark levels at SAR 2,800-2,900/t ($747-773/t) DAP, while smaller mills offered at SAR 2,620-2,750/t ($699-733/t). Prices have increased by over SAR 100/t ($27/t) w-o-w, supported by tight supply and higher input costs.
Market momentum has been led by Saudi Iron and Steel Company (Hadeed), which raised rebar prices to SAR 2,900/t ($773/t) delivered, taking the total increase to around SAR 540/t ($144/t) since early April. During the latter part of the week, the producer implemented a further hike of SAR 100/t ($27/t) on both rebar and coil for May deliveries starting 1 May 2026, highlighting continued upward pressure in the market.
A trader commented, “Demand is not strong enough to fully support these levels, but supply constraints are pushing prices higher.” While some billet arrivals have eased supply slightly, overall availability remains tight, keeping sentiment firm.
Outlook
BigMint sees the regional market remaining firm in the coming week, supported by tight billet availability. However, demand conditions remain mixed across the UAE and Saudi Arabia. Any sustained price increase will depend on raw material availability and actual consumption levels, especially heading into the summer slowdown period.
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