Demand for Turkish rebar in the export markets has continued to be characterized by sluggishness this week. While one Turkish steel producer concluded a rebar deal in Egypt early this week at $395/mt CFR on theoretical weight basis, Turkish traders’ rebar quotations to the export markets have remained stable week on week at $360-390/mt FOB. Although demand for import rebar in Egypt is still weak due to the long-standing tightness of foreign exchange availability in the country, the Turkish steel producer has been able to conclude deal in the country in early this week since Egyptian traders’ inventories are at low levels.
In the United Arab Emirates (UAE), local steelmaker Emirates Steel Industries (ESI) has reduced its rebar prices by AED 128/mt ($35/mt) to AED 1,422/mt ($388/mt) ex-works for October production, as compared to its previous prices for September output materials. Last week, UAE-based steel manufacturers, including ESI, arranged a meeting and highlighted that, despite the strict implementation of customs duty on imports, there has been an upsurge of rebar imports arriving in the Emirates from non-GCC countries, which makes it hard for domestic producers to keep their price levels stable. Also, at the meeting, it was remarked that several decisions have been taken by the government with the view to encouraging the use of local steel products. ESI’s downward revision of its domestic rebar prices for October production after this meeting attracted the attention of market players. Meanwhile, traders’ inventories in the UAE market have been on the high side for a while and this is exerting pressure on prices. It is thought that ESI has decreased its prices in order to encourage buyers to meet their needs from the domestic market and so that inventories of domestic products in general may decline. While UAE-based traders are also expected to decrease their prices in the coming period, Turkish suppliers are expected to come under downward price pressure in order to compete with domestic prices in the UAE market. However, Turkish suppliers are unwilling to meet UAE-based buyers’ demand for discounts since the downtrend of scrap prices would not compensate for the reductions in prices sought by UAE-based buyers, as stated by market sources.
$1 = AED 3.67