Demand in the local United Arab Emirates (
UAE) market has revived slightly since last week, while domestic
rebar prices in the country which had moved down since the beginning of January have continued this trend, softening by AED 25/mt week on week to AED 1,750-1,775/mt ($477-484/mt) delivered to customer. Additionally, today, February 7,
UAE-based steel producer Emirates Steel Industries (ESI) announced its prices for February output, reducing its domestic
rebar quotations by AED 128/mt compared to its price levels for January output to AED 1,690/mt ($460/mt) ex-works. Following this development, it is believed that
UAE-based traders may reduce their
rebar prices further for their domestic market.
Demand for Turkish
rebar in the
UAE had been at low levels for some time. However, at the weekend a Turkish steel producer concluded several sales to the United Arab Emirates (
UAE) for a total of 20,000 mt of
rebar at $405-410/mt CFR on theoretical weight basis. The same steel mill also concluded another deal to the
UAE for 35,000 mt of
rebar at $400-405/mt CFR on theoretical weight basis. According to market sources, the Turkish steelmaker in question filled a cargo ship with the abovementioned sales volumes, with its total
rebar sales tonnage to the
UAE amounting to 55,000 mt.
With import scrap prices in Turkey rising following the ex-US deal heard at the beginning of last week and also in the ex-US and ex-Europe scrap deals reported today, Turkish steel mills' production costs have increased and so they are no longer expected to offer
rebar to the
UAE in the range of $400-405/mt CFR on theoretical weight basis. In the current week, Turkish
rebar offers to the
UAE have been at $410/mt CFR on theoretical weight basis. Also, after ESI's announcement of a decline in its
rebar prices for February output,
UAE-based buyers' demand for Turkish
rebar is not expected to revive in the short term.