rebar prices for August flat, may be hiked for September
Last Update: 25/07/2011 12:52:07
Rebar offer prices in the United Arab Emirates are unlikely to increase in the coming weeks as various factors reduce the consumption of steel in the country and a shipment of the product arrives from Turkey at the beginning of August. However, market conditions could be right for an increase in the second half of next month, Hot weather is slowing construction activity in the UAE and the approaching Ramadan period, which occurs in August this year, will see a reduction in working hours across the economy. A delayed shipment of rebar from Turkey is also expected to arrive in Dubai at the beginning of next month, a source says. SBB was unable to ascertain the tonnage. Current offer levels from Turkey are $730-740/tonne cfr. Emirates Steel is still offering rebar at AED 2,760/tonne ($751/t), an informed source says, although the amount of off-takers is thought to be small due to weak construction activity. However, this offer is unlikely to drop, the source adds. Rebar bookings in the UAE are expected to increase in September and especially in Q4 when a host of construction projects are anticipated to get underway in the GCC. “Oil is still hovering at $100/barrel which gives impetus to infrastructure spending,” a trader says. Steel inventories are also expected to be low in August, at a time when regional producers carry out maintenance. This could lead to a shortage in the market when buying picks up towards September and a hike in prices, a source says.
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