Chinese traders seek to re-enter UAE rebar market

Tuesday, 16 December 2014 16:49:27 (GMT+3)   |   Istanbul
       

According to market sources, import rebar cargos previously purchased at lower prices have continued to put downward pressure on the UAE domestic rebar market, though local prices have managed to remain unchanged over the past week in the range of AED 2,100-2,120/mt ($572-578/mt) delivered. Moreover, expectations that Emirates Steel Industries (ESI) will lower its rebar prices next week may help contribute to downward movement of prices in the local UAE market. These circumstances have caused UAE buyers to maintain a wait-and-see approach for the time being.
 
Meanwhile, ex-Turkey rebar offers to the UAE have increased by a slight margin of $5/mt to $500-505/mt Dubai. UAE buyers do not believe these increases will be sustained for long, while some of them state that offers might soften soon enough.
 
Another important development in the UAE market is the bid by Chinese players to re-enter the market. Chinese traders are reported to have recently visited the UAE in order to build new business relations and look for new opportunities to conclude sales. However, ESI has continued to put pressure on UAE buyers to prevent them from concluding transactions with the Chinese, and so market players have shown a lack of interest in the Chinese traders' rebar offers. Additionally, the difference between Turkish and Chinese offers, which was once at $70-80/mt, has narrowed down to the range of $40-50/mt, meaning that Chinese rebar offers are not so attractive anymore. In this context, no new ex-China transactions have been recorded in the UAE market except for wire rod and structural steel.
 
$1 = AED 3.67

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