Demand in the United Arab Emirates has remained at low levels during the past week, while in the same period traders have kept their rebar offers to the UAE in the range of AED 2,100-2,200/mt ($572-599/mt) delivered to customer.
Buyers in the UAE restarted their rebar purchases from Turkey last week with a deal concluded with two different Turkish steel mills for a total of 50,000 mt of rebar at $400-405/mt CFR on theoretical weight basis, while they state their inventories are at low levels and that they are planning to continue their purchases of Turkish rebar in the coming period. However, following the above deal, Turkish steelmakers are unwilling to conclude rebar deals to the UAE below $405/mt CFR. On the other hand, UAE-based buyers, who find the increases in Turkish rebar offers unrealistic, still prefer to conclude bookings from Turkey for limited rebar tonnages.
Additionally, SteelOrbis has been informed today, June 14, that a Turkish steel producer has concluded a sale to the UAE for 12,000 mt of rebar at $405/mt CFR on theoretical weight basis. Price is expected to be determinant in the volume of Turkish rebar sales to the UAE in the short term. If Turkish steel mills maintain a strong stance on their recent price increases, buyers in the UAE are expected to continue to limit their rebar purchases and to put further pressure on Turkish rebar quotations.
$1 = AED 3.67