According to market sources, prices in the
UAE rebar market have declined by AED 20/mt ($5/mt) over the past week to AED 2,110/mt ($575/mt) delivered. Meanwhile,
UAE buyers expect local steelmaker Emirates Steel Industry (ESI) to revise its
rebar offers downwards in the coming 7-10 days but the likely margin of the anticipated revision is still unclear.
On the other hand,
rebar offers from Turkey to the
UAE are currently at $500/mt Dubai on theoretical weight basis.
UAE buyers are waiting for a clearer price trend in the local and global markets, while no new ex-Turkey
rebar deal has been heard in the
UAE market since last week. If ESI reduces its
rebar prices significantly,
UAE buyers are not expected to show interest in Turkish
rebar offers, while a slight decrease in ESI's prices would mean that Turkish exporters'
rebar offers at $500/mt will be accepted by
UAE buyers.
Meanwhile, the sharp rise in the strength of the US dollar against the Turkish lira to TRY 2.28 to a dollar may be a positive development for Turkish exporters. In case of insufficient demand in the
UAE market, Turkish exporters can soften their
rebar offers without damaging their profit margins due to the stronger dollar if the exchange rate remains stable.
$1 = AED 3.67