Week 49 finally saw some ruffles in the dreary environ of MEA steel market. On the face off it seems the activity was an appendage of the low inventory an outcome of nearly non-existent buying over the last 2 Qtr’s and the recent blithering in International steel market.
Factually the turnaround seems an outcome of supply shortage owing to curtailed production by Emirates Steel owing to technical problems. The sudden shortfall in supply has awoken the market.
Corollary outsourcing from Turkey is obvious option .It is learnt that about 300000 t of rebar has been booked during the last fortnight at USD 630-635 per tonne, CNF putting the blinkers on.
Taking cue from the propped market after Emirates Steel set the benchmark level of AED 2400 per tonne, ex-mill last month thereby attaining a jump of nearly 10-15%.
Ironically the billet prices have eclipsed rebar which might prove to be its own nemesis as buyers would opt for re-bars rather than billets thereby exerting pressure on billet prices and its cascading effect on rebar in the long run. However it can only be hoped that the revival whatever be the reason should stay long enough to ignite demand and provide some succor.