Concerns increase in Dubai rebar market, prices lack strength

Negative indicators in global markets, uncertainty in the European economy and sluggishness in the steel markets have all contributed to increasing concerns of players in the Dubai domestic rebar market. Buyers in Dubai, who are extremely cautious at present, state that the UAE rebar market is fairly tense and that local retail rebar prices are indicating signs of downward movement.
 
Accordingly, retail rebar prices in the UAE domestic market are currently standing at AED 2,550-2,570/mt ($694-700/mt) ex-warehouse, after a drop of AED 10/mt ($3/mt) on the lower end of last week's price range. Market players anticipate a further softening in local retail rebar prices.
 
In the latest transaction from Turkey to Dubai, the price of rebar was at $655/mt CFR on theoretical weight basis. Although Turkish rebar prices for Dubai have not changed since this transaction, no new purchase has been heard since. In the meantime, this week representatives from a Turkish mill are visiting buyers in Dubai in order to conclude new transactions and solidify customer relationships.
 
$1 = AED 3.673