As SteelOrbis reported early this week, Turkish
rebar mills have paid visits to their customers in the
UAE to conclude new deals for September shipments. Keeping a close eye on the Turkish market, buyers in the
UAE have stated that, although the steel markets are indicating a downward tendency in general - with ex-US HMS I/II 80:20 scrap prices in
Turkey dropping to $373-375/mt CFR and
rebar price decreases seen in the Turkish domestic market, Turkish
rebar suppliers have not reflected any of these downward pressures in their offers to the
UAE and thus they find Turkish
rebar offers to be at significantly high levels.
Last week, representatives from three major Turkish
rebar producers paid a visit to Dubai. One of these producers, with a limited market share in the
UAE, has become acquainted with all the
rebar importers in Dubai, but the mill's representative left the country without concluding any transaction, stating that importers' expectation at $600-605/mt CFR on theoretical weight basis for September shipment is too low. In the meantime, one of the remaining two market leaders has started to give offers for October shipments, instead of September shipments. The other market leader, on the other hand, has given
rebar offers at $607-610/mt CFR on theoretical weight basis for September shipments. It is thought that, since they have no other offer level available, buyers in the
UAE may have to accept this price level, concluding a transaction for a single cargo at least.
Buyers in the
UAE state that local
rebar producer Emirates Steel Industries (ESI) will announce its
rebar prices for October next week, possibly adjusting them downwards as compared to September. If this happens, it is thought that
rebar import offers above $605/mt CFR on theoretical weight basis will not gain acceptance in the
UAE.