UAE rebar market awaits local mills’ domestic price announcements

The still sluggish UAE domestic rebar market has not witnessed any changes in prices since last week. Accordingly, rebar prices in the country are still standing at AED 2,560-2,575/mt ($697-701/mt) on theoretical weight basis, for deliveries to customer.
 
Demand in the UAE for local production and imported rebar has remained silent and no improvement is anticipated this week. Next week, Emirates Steel Industries (ESI) and Qatar Steel are expected to announce their rebar prices for the UAE market. Until these announcements are made, domestic rebar prices in the UAE are foreseen to trend sideways at current levels and no change is expected in demand.
 
As SteelOrbis has reported, rumors that the government will cancel the five percent import duty exemption of cutters and benders for rebar has continued to cause unease in the market. Following the emergence of these rumors, inquiries for rebar imports have decreased significantly and the number of rebar offers to Dubai from Turkey, the CIS and China has also declined in response.
 
However, despite such factors, it should be noted that the UAE will have to import rebar to satisfy its monthly rebar market demand of 200,000 mt, given that its current domestic production is approximately 150,000 mt. As a result, local traders will probably start importing rebar soon, though they are not expected to make their move until domestic producers' price announcements next week. It is thought that the local traders, who are keeping a close eye on the global economic situation, may postpone their rebar bookings until the last minute, anticipating a softening in prices.
 
$1 = AED 3.673