It is reported that the import prices of the rebars are on slide in UAE.
As since last 30 days Turkish mills could not succeed to book any rebars parcel at targeted levels of USD 500 CFR levels, market sources inform that the some rebar parcels by UAE buyers have been now booked from Turkey at USD 450 per tonne on theoretical weight.
This shows that UAE market is interested to import but they need right price levels.
We had vide our article “Tremors of crash in rebar, billets and scrap prices” on May 15th 2009 had predicted this scenario.
Excerpts for the article are reproduced below
It is learnt from our market sources that Turkey, being a major player in global re bars market and the epicenter of recent turnaround in global long product and input materials prices may turnout to be a nemesis triggering a severe dip in long products prices in the coming 2 to 3 weeks.
Turkish rebar producers have been aggressive since the start of 2009 notching up an export of 4 million tonnes by April 2009. Upon dissection of this fairy run the market spread seems to be skewed in favor of primarily three countries viz., Egypt (1.8 million tones), Iran and Libya gulping 80% of their export volume with some residual import by UAE buyers.
As a fallout of this hyper buying by these 3 countries, the market demand has slumped recently owing to adequacy .It is learnt that Egyptian Alexandria Port is facing congestion with an array of vessels, yet to be unloaded, but the core factor is abundance of material.
Most of the major buyers and importers in these countries are reported to be under pressure and have stopped buying further cargos. As a result, the demand of Turkish rebars for exports has become negligible amidst plenty of availability.
The emerging scenario augurs gloom in the market with inevitable price cuts on the anvil. There are indications of the rebar prices touching USD 400 FOB levels, which translate loss of nearly USD 100 per tonne.
If the prices of rebars make nose dive how can billets and scrap be far behind. It is already being prophesied that the market for billets seems to have peaked precisely for the same reason as re bars. There is not much time left before the panic buttons are pressed as June rolling billets will be arriving in July for re-rolling in August. With Ramadan round the corner in Middle East, mills have to start selling now at lower prices or else end up with huge stocks and no buyers - crashing the market.
The only silver is that the Turkish rebar mills are booked till June and hoping for a demand revival in these countries in the intervening period.