After the dip in demand of rebars from Egypt, Turkish mills are reported to be under severe pressure and may have to reduce their export offer levels soon.
During last 10 days Turkish rebar fell by USD 30 per tonnes to USD 40 per tonnes. And as per some market estimation by July rebar price in ME market can reduce to about USD 380 per tonne to USD 400 per tonnes FOB Turkey.
However, in absence of demand from Egypt, Iraq and Libya, UAE can become a new engine of the market fro Turkish mills. According to local sources, by 2008 steel stockpiles in UAE have come to an end and faint signs of revival if construction industry is seen, especially in Abu Dhabi.
But market sources have pointed to USD 420 per tonne to USD 430 per tonne CFR UAE levels, as the comfort zone for UAE buyers, who had been hit very badly during last year’s crash making them very cautious.
You may like to see an article on this matter published on May 15th 2009 “Tremors of crash in rebar, billets and scrap prices” by www.steelprices-middleeast.com forecasting such a fall.