- Rebar offers rise after three consecutive monthly roll-overs
- Saudi mills also continue lifting prices despite subdued construction demand
EMSTEEL, one of the UAE’s leading steel and building materials producers, has increased its June 2026 domestic rebar prices by over AED 100/t ($27-28/t) after maintaining stable levels for three consecutive months between March and May – currently stood at AED 2,824/t ($769/t) exw. Market participants linked the upward revision to tightening imported raw material availability and growing logistical uncertainties across the Gulf region.
Industry sources said the latest rally reflects mounting concerns over supply chain disruptions and semis availability amid escalating geopolitical tensions in the Middle East. “We are trying to keep inventories as high as possible. Nobody knows how long the war and the blockage of the Strait of Hormuz will last,” a regional market participant said.
Supply concerns tighten Gulf long steel market
The increase in domestic rebar offers comes as Gulf steelmakers face rising pressure from volatile freight costs, delayed cargo movements, and uncertainty surrounding imported billet and raw material supplies. Market sentiment has strengthened in recent weeks as buyers increasingly shift to precautionary stocking to mitigate potential disruptions.
Saudi Arabia‘s long steel market had already moved upward earlier in May, with Saudi Iron and Steel Company (Hadeed) increasing rebar and wire rod offers amid persistent cost inflation and supply-side pressure. Hadeed raised May rebar prices by SAR 100/t ($27/t) w-o-w to SAR 2,900/t ($774/t) DAP, while 6.5-14 mm wire rod offers increased to SAR 2,950/t ($787/t) DAP. Later in the month, the producer implemented another SAR 30/t ($8/t) increase, taking rebar prices to SAR 2,930/t ($781/t) DAP.
Market participants attributed the increases to raw material shortages, elevated inland transportation costs, and ongoing regional instability. “Big mills are not making money because they don’t have raw materials and logistics cost from Jeddah to the Eastern Province is extremely high, specifically for Hadeed and Al Ittefaq Steel. Small mills are enjoying,” a Saud based market participant said.
Discounts continue despite higher official prices
Despite repeated increases in official offers, workable transaction prices in Saudi Arabia continue to trail published levels due to subdued construction demand. Producers in the western and central regions are reportedly offering discounts to secure volumes, while buyers continue limiting purchases to immediate requirements.
“Despite the announced prices, actual deals are still being concluded lower,” a regional market source noted.
Market participants said the widening gap between official and workable prices reflects increasingly fragmented conditions across the Gulf long steel market, with integrated mills facing pressure from metallics shortages, elevated freight costs, and supply chain disruptions.
EMSTEEL reports stronger Q1 profitability
Despite softer steel sales volumes, EMSTEEL reported significantly improved financial results in Q1 2026, supported by lower raw material costs, operational efficiencies, and disciplined cost optimisation measures.
Group revenue remained broadly stable y-o-y at around AED 2.2 billion ($590 million), while operating profit surged 185% y-o-y to AED 329.3 million ($89.7 million). Net profit climbed 246% to AED 298.7 million ($81.3 million).
“EMSTEEL has delivered a strong start to 2026, with resilient revenue performance and significantly improved profitability driven by disciplined cost optimisation and operational efficiency,” group CEO Saeed Ghumran Al Remeithi said.
Outlook
Middle East long steel prices are expected to remain firm in the coming weeks, supported by elevated freight costs, raw material shortages, and geopolitical uncertainty. However, subdued construction activity and widening gaps between official and workable transaction levels may continue limiting aggressive price gains unless downstream demand improves materially.
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