As SteelOrbis previously reported, the
UAE government had been expected to cancel the exemption for
rebar cutters and benders from the five percent import duty on
rebar. However, such rumors were denied this week by the
UAE Ministry of Economy. The ministry stated that
UAE cutters and benders will be under strict control amid reports of serious illegal practices, as cutters and benders sell imported rebars to the domestic market without performing any cutting and bending, without having paid import duty.
As also confirmed by the ministry's statement, market players in the
UAE state that the exemption for
rebar cutters and benders from the five percent import duty on
rebar is still effective. However, with the introduction of new measures, the ministry is expected to inspect cutter and benders' import records, capacities, check weighbridge registers and all other records. Given that more than 60 percent of the
UAE's total
rebar imports have being sold in the domestic market without any cutting and bending, such measures would affect 60 percent of the country's total imports.
Market sources state that if local
rebar mills in the
UAE limit their
rebar price hike to 2-3 percent instead of a five percent increase in order to achieve a balance between their domestic prices and import offers as expected, then
Turkey's
rebar exports to the
UAE may decrease by about 50 percent or more in the medium term.
Currently, Turkish
rebar offers to the
UAE are standing at $610/mt CFR for January shipments and at $620/mt CFR for February shipments, both on theoretical weight basis.