Demand for rebar in UAE fails to improve

Demand for rebar in the United Arab Emirates (UAE) has failed to improve since Ramadan and is still at low levels. Meanwhile, UAE-based traders have reduced their rebar prices by AED 50/mt ($14/mt) week on week to AED 1,750-1,800/mt ($477-490/mt) delivered to customer.
 
Last week, UAE-based steel producers Emirates Steel Industries (ESI) and Conares announced their new rebar prices. ESI reduced its rebar prices by AED 527/mt ($144/mt) compared to its previous price levels to AED 1,750/mt (477/mt) ex-works. The same day ESI announced its new rebar quotations, it was heard that a Turkish steel producer concluded a deal in the UAE for 20,000 mt of rebar at $380/mt CFR on theoretical weight basis. After this deal, market sources stated that the decline in ESI's rebar prices was insufficient and that ex-Turkey rebar quotations are still more attractive. SteelOrbis has been informed that Turkish steel producers have raised their rebar offers to the UAE by $10/mt during the past week to $390/mt on theoretical weight basis as market sources considered ESI's rebar prices to be on the high side and also due to the increases recorded in global raw material and semi-finished steel quotations. Meanwhile, Conares announced its new rebar quotations on July 15 at $470/mt ex-works, raising them by $5/mt compared to their previous price levels. 
 
According to market sources, rebar inventories of buyers in the UAE are sufficient and so they are in no rush to conclude new rebar transactions, while they are expected to continue their rebar purchases only in line with their needs.
 
$1 = AED 3.67