The much hyped buying revival post Ramadan opened on a low note on Monday. With buyers and stockiest gradually trooping in clarity eluded the market.
However it seems the local mills have taken the lead with Emirates Steel announcing EXW price hike of rebars by AED 100 per tonne to reach AED 2350 per tonne EXW against site payment. Following suit other mills also revised prices in the range of AED 50 per tonne to AED 100 per tonne.
Import offers from Turkey, reported at USD 615 per tonne CFR Dubai, are yet to be accepted as locals mills intend to make hey with better payment terms and shorter lead time.
On the hindsight local re rollers are facing the peril of closure since billet and rebar prices are almost at par in the range of USD 600 per tonne to USD 610 per tonne CFR Dubai.
Plate is being offered at USD 730 per tonne CFR Dubai from Ukrainian sources with bookings likely to take place at the same levels as stock levels are low.
Indian mills are trying to step into the shoes of Mobarakeh Steel which has been virtually absent after the threat of sanctions with HRC offers at USD 660 per tonne CFR Dubai. It is expected that transactions might take place by this weekend at USD 10 per tonne less.
The market is likely to take a clear direction by the weekend when traders who have booked at lower levels earlier will enter the arena with position cargoes.
Ironically it is learnt that despite the hiked prices of flat and long products mills are yet to fill their order books which is indicative of the fragility of this price rally.