According to market sources, prices in the local UAE rebar market have decreased by AED 130/mt ($35/mt) on average during the past week to the range of AED 1,460-1,470/mt ($398-401/mt) delivered, for October production. Despite strong demand, sellers have not been able to prevent the decreases in local prices due to the declines seen in global rebar prices, which have negatively impacted local rebar prices.
On the other hand, Turkish steel producers' most recent deal to the UAE was concluded at the end of September at $350/mt CFR on theoretical weight basis. However, Turkish steel producers' new offers to the country are expected to be at $340/mt CFR and market sources believe that buyers in the UAE will accept this price level. Meanwhile, UAE-based steelmaker Emirates Steel Industries (ESI) has reduced its rebar prices for November and December production. Market sources state that this move by ESI will make it very difficult for Turkish exporters to conclude sales to the UAE up to the end of the current year.
$1 = AED 3.67