According to market sources, prices in the local UAE rebar market have decreased by AED 70/mt ($19/mt) over the past two weeks to the range of AED 1,720-1,730/mt ($469-471/mt) delivered, for August production. Market players state that the downward price revision of AED 145/mt ($40/mt) announced by local producer Emirates Steel Industries (ESI) for August production and the gradual softening of Turkish rebar prices seen in the last concluded deals to the UAE due to the downtrend of import scrap prices in Turkey since mid-June have played important roles in the downtrend of rebar prices in the local UAE market. With the end of Ramadan, demand for rebar in the UAE market has improved slightly and it is still at medium levels.
Meanwhile, Turkish steel producers’ rebar offers to the UAE market have declined by $5/mt over the past two weeks to $410-415/mt CFR on theoretical weight basis, for September shipment. While market players are wondering if Turkish producers’ lower prices will gain acceptance in the UAE market, buyers in the UAE think that Turkish rebar offers are more attractive. Accordingly, deals for Turkish rebar are expected to be seen in the UAE market in the coming period, with similar tonnages expected compared to the past month.
$1 = AED 3.67