The downtrend in the global rebar markets which started in mid-July has this week continued on its declining track. Construction works were continuing at speed in the Middle East countries before Ramadan despite the hot seasonal weather conditions; however, it now seems that the construction works in the region have slowed down in the second week of Ramadan. For this reason, rebar consumption has decreased compared to the pre-Ramadan period, while supply has increased further compared to same period. This week, the rebar prices in the UAE market have registered a downward trend compared to last week, declining to a range of AED 4,000-4,100/mt ($1,089-1,116/mt). However, the rebar deliveries for September from Turkey are currently at $1,400/mt CFR Dubai. Market players in Dubai think that the decline in rebar prices will slow down to a certain degree and may rebound depending on end-user demand. These players see the last week of Ramadan as the earliest time for this scenario to take place. However, the determining factor in this situation will be end-user demand.
It is known that the UAE market has slowed down its buying activity due to the declining end-user demand and the rapidly arriving September deliveries during Ramadan.
Rebar prices in the Turkish domestic market continue to decrease. The rebar prices in this market were at price levels of TRY 1,100-1,120/mt ex-works including VAT ($747-760/mt ex-works excluding VAT) in the early days of this week. These prices have decreased to around TRY 1,080/mt ex-works including VAT ($733/mt ex-works excluding VAT) coming up to the end of the week. Meanwhile, Turkish rebar export offers have also declined compared to last week, dropping to a range of $750-850/mt FOB Turkey during the current week.
On the other hand, due to the decline in price levels in the global markets, exports from China have registered a downtrend. In the first three months of 2008, Chinese producers were not able to perform exports due to the export duty of 15 percent imposed on rebar. Now, with rebar price levels declining across the globe, Chinese producers are again faced with similar difficulties in their export activity.
Turkish producers had concluded some deals to China's neighboring countries thanks to the Chinese producers' absence from the export market during the first three months of 2008. With the increased difficulties again facing Chinese exports, it is heard that a Turkish producer has this week concluded a large tonnage deal to Singapore.
Meanwhile, rebar price declines have this week continued to be observed in the Saudi Arabian and Iranian markets. The global rebar price downtrend and also Ramadan have contributed to the downward movements in these countries.