Buyers in UAE expect lower Turkish rebar offers

As SteelOrbis reported early this week, Turkish rebar mills have paid visits to their customers in the UAE to conclude new deals for September shipments. Keeping a close eye on the Turkish market, buyers in the UAE have stated that, although the steel markets are indicating a downward tendency in general - with ex-US HMS I/II 80:20 scrap prices in Turkey dropping to $373-375/mt CFR and rebar price decreases seen in the Turkish domestic market, Turkish rebar suppliers have not reflected any of these downward pressures in their offers to the UAE and thus they find Turkish rebar offers to be at significantly high levels.
 
Last week, representatives from three major Turkish rebar producers paid a visit to Dubai. One of these producers, with a limited market share in the UAE, has become acquainted with all the rebar importers in Dubai, but the mill's representative left the country without concluding any transaction, stating that importers' expectation at $600-605/mt CFR on theoretical weight basis for September shipment is too low. In the meantime, one of the remaining two market leaders has started to give offers for October shipments, instead of September shipments. The other market leader, on the other hand, has given rebar offers at $607-610/mt CFR on theoretical weight basis for September shipments. It is thought that, since they have no other offer level available, buyers in the UAE may have to accept this price level, concluding a transaction for a single cargo at least.
 
Buyers in the UAE state that local rebar producer Emirates Steel Industries (ESI) will announce its rebar prices for October next week, possibly adjusting them downwards as compared to September. If this happens, it is thought that rebar import offers above $605/mt CFR on theoretical weight basis will not gain acceptance in the UAE.