Mild effervescences seem to be building up in the Gulf when rest of the global market prepares for winter hibernation. Middle Eastern market which has been a perpetual laggard in the post recessionary era has punctured all expectation of even a semblance of revival in the last 3 years.
Recently faint momentum is building up albeit for inordinate reasons of cost escalation. Scrap levels are picking up owing to curtailed supply during winter. Recently scrap levels have increased by USD 10 per tonne to USD 20 per tonne. At the same time increased buying by Turkish gluttons after nearly a quarterly absence has warmed the Gulf waters. More so with the billet suppliers in Black Sea and Europe remain adamant at USD 580 per tonne to USD 585 per tonne after hitting the floor at USD 560 per tonne to USD 575 per tonne last week there is barely any scope for roll back on rebar offers regardless of transactions.
It is learnt that Turkish mills have hiked offers of re-bars by USD 20 per tonne to USD 660 per tonne CNF, Dubai. Even though transactions are yet to be cracked but offers are unlikely relent in the short term.
Domestic market continues to sulk with buying primarily restricted to need based. Even the local mills have been on correction course over the last 3 months would be looking for some reprieve in this gung ho. Domestic market level of re-bars is prevailing at AED 2450 per tonne EX warehouse 120-150 credit.
In the flat product HRC is being offered at USD 615 per tonne and USD 630 per tonne from Ukraine and Russian respectively. Plate is being offered at USD 680 per tonne from China and Ukraine taking the sheen of latter in the cut throat competition.
Gulf waters is likely to remain warm in the frigid winter besetting other steel hubs owing to cost push till at least mid-January.
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