Buyers in local UAE rebar market expect lower prices

According to market sources, prices in the local UAE rebar market have decreased by AED 10/mt ($3/mt) during the past week to the range of AED 1,600-1,610/mt ($436-439/mt) delivered, for September production. Market sources state that prices are foreseen to decline with the end of some of construction projects in the country. New projects are not expected to be commenced right away and buyers are postponing their rebar bookings since they think that prices will decrease further.
 
On the other hand, Turkish steel producers, whose most recent rebar offers to the UAE were at $395-400/mt CFR on theoretical weight basis, have not issued any new price offers but are expected to make new offers next week during their planned visits to the UAE. With import scrap prices moving down to $215/mt CFR, UAE-based buyers are expected to make firm bids to Turkish producers at $370-375/mt CFR. Market players state Turkish producers may accept buyers' firm bids since the UAE has almost become their sole export market.
 
$1 = AED 3.67