SteelOrbis has been informed that transaction activity and demand in the local UAE rebar market have increased further during the past week, while local rebar prices have declined by $15/mt on average in the same period to the range of AED 1,830-1,840/mt ($498-501/mt) delivered.
Meanwhile, demand for import rebar in the UAE market has been slack over the past week. Turkish producers' rebar prices have increased by $20/mt week on week to $450/mt CFR on theoretical weight basis and are considered to be on the high side by UAE-based buyers. Therefore, Turkish producers are reportedly experiencing difficulties in concluding new deals. After the ex-Turkey transaction concluded last week for 6,000 mt of rebar at $420/mt FOB, no new deal for Turkish rebar has been heard in the UAE market. On the other hand, local producer Emirates Steel's decision to reduce its rebar prices last week has given it a competitive advantage compared to Turkish producers. If Turkish producers do not reduce their rebar offers to the UAE market, Emirates Steel appears likely to maintain its competitive advantage in the coming period. Additionally, buyers in the UAE market are pleased with the trend of demand as construction activities continue without slowing down and they hope Turkish rebar offers will also be reduced in the coming days.
$1 = AED 3.67