Steel market in Middle East, especially UAE, is reported to be in pits, despite positive sentiments globally.
It seems that Dubai debacle is taking its toll as market players are facing a situation, which they have never witnessed in many years.
We understand that no change has taken place in domestic or retail prices despite increase in international levels. It is reported that in addition to non existent demand, the reluctance of banks to fund transactions has led to a situation wherein anything is possible if one has cash.
We understand that although market prices remain unchanged, one can get a hefty discount on buying as stockiest are under tremendous pressure to liquidate positions and square off with banks even by booking major losses. This is affecting even neighboring countries as people are willing to supply far flung demand just to get rid of material at throwaway prices.
One of the major market players told us that he does not see any light at the end of the tunnel. He added that “If the situation persists, many players would be forced to shut shop in next 3 to 4 months.”
He told us that the biggest problem is loss of confidence is whatever you do.