SteelOrbis has been informed that prices in the local UAE rebar market have remained unchanged over the past week at AED 1,950/mt ($531/mt) delivered. Market sources state that demand in the local market is decent, while after Emirates Steel Industries' (ESI) downward revision of its rebar prices last week, Qatar-based Qatar Steel has announced reduced rebar prices for March production at QAR 1,880/mt ($512/mt) ex-works, compared to its rebar prices at QAR 1,925/mt ($525/mt) ex-works for February production.
Meanwhile, following their purchases of Turkish rebar at $450/mt CFR on theoretical weight basis concluded in previous weeks, UAE-based buyers consider it is too early to conclude new import rebar transactions and so have maintained a wait-and-see approach instead. In response, the trend of Turkish rebar offers has started to become clearer in the current week, with prices declining to $440-445/mt CFR on theoretical weight basis and for shipment at the end of April. No new transactions have been heard in this price range, but market sources report that representatives of Turkish producers are currently paying a visit to UAE-based buyers and are making considerable efforts to conclude deals for shipment at the end of April.
However, there are already signals that ESI may further reduce its rebar prices for April, after the steelmaker's decision to reduce its prices for March. Additionally, UAE-based buyers' stocks are at very high levels due to their purchases of Turkish rebar at $450-490/mt CFR concluded in recent months following the decline in global market prices. Moreover, buyers in the UAE believe there is still room for prices to decline after the sharp fall in Turkish rebar offer prices in recent months. Under these circumstances, UAE-based market sources believe that Turkish producers will find it difficult to conclude sales to the country at the current time.
$1 = AED 3.67