The recent flutter in international price has throttled efforts by the mills to cope and cater the depression in this MEA region.
It is evident that the Middle Eastern market has remained largely unscathed from the glimmer of revival visible elsewhere. Rebar mills being the mainstay of Middle Eastern steel market are sinking under its own weight as the consumption of rebars in UAE, has plummeted by a heart breaking 50% from around 5.5 million tonnes last year, to 2.6 million tonnes in 2009.
Undoubtedly the domestic demand has remained abysmal crushed with impunity every time it has raised its head marked by consecutive debacles. The fear of economic bankruptcy has left an indelible imprint on the sagging economy.
Reeling under the endless gloom rebar prices have towed declination. Rebar is being quoted at around AED 1850 per tonne (USD 503) in the domestic market.
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Thursday, December 17, 2009
MEA rebar producers face cramped elbow room
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