People's Republic of
China has now left aside its years-long importer identity and appeared as a net exporter; a development expected for the last few years against which some
trading companies have already prepared themselves. After increasing in recent years, the export appetite and quantity of many years-long importer
China have naturally shifted the balances.
China became a net exporter when the exports of both flat and long products from this country to mainly other Asian countries,
Europe and the US increased. In the apparent future,
China is expected to retain its net exporter identity.
In any discussion regarding the impact of
China origin rebars on the
UAE market, first of all, it is necessary to underline that exporting debar from
China to the
UAE is not so easy at all. As known; rusting is a serious problem for the
UAE market. Considering both
production, stocking and shipping conditions; it is extremely difficult for Chinese manufacturers to meet the expectations of the
UAE market for the time being, as reported to SteelOrbis by some
trading companies closely interested in this kind of transactions.
Again, according to the information obtained, the number of producers in
China that may produce and ship rebars suitable for the
UAE market is very limited. Because, just producing the appropriate standard and size of steel is not sufficient. In order to avoid rusting in a short time, the
production that requires high yield resistance is necessary to be done without the Tempcore process, and following the
production, the loading should be completed very quickly. However, most of the steel mills in
China that may export their products are not able to produce in this way, and again, most of them use state-owned ports for their exports. According to the information we have obtained, it is not possible to accept the vessel to the port before the entire material to be shipped arrives and is stowed at the port, as these ports already have face a serious congestion. On the other hand, while the materials such as cold rolled sheet and
galvanized coil can be stored in indoor areas, stowing debars in indoor areas is not permitted. In this case, the material faces the risk of waiting outdoor for a long time, which means the existence of a great rusting risk when the high amount of rainfall at the northern ports of
China, in Shanghai and in the south is considered.
Taking into account all these issues, the number of producers who can both perform the suitable
production for the
UAE market, who have their own private ports, and who can deliver the material immediately right after the
production seems very limited.
As known, there are many challenges beyond the penetration into the
UAE market of the mills that have no idea and are not prepared for this market. It is not possible to overcome these challenges easily in a short time. As the active traders in this market confirmed to SteelOrbis, both the obligation of certification and the rusting problem are not overcomable with any Chinese producer for the export and
trading companies. Consequently,
UAE market will not see ex-
China rebar shipments much enough to cause a serious market share fray in the short term.