In the Middle East region, Saudi Arabia in recent years had been an exporter of rebar not only to Dubai but also to other neighboring countries as well. However, with the local demand in Saudi Arabia increasing and now having a greater impact on the domestic supply-demand balance, the country has become an importer of rebar. For this reason, the country's Ministry of Commerce and Industry has sent notification to rebar and scrap exporters to halt exports until further notice. The latest rebar deals from Turkey to Dubai have been concluded at $1,470/mt CFR/mt for September shipment. Imported rebar prices in the local Dubai market are in the range of AED 5,500-5,600/mt ($1,497-1,525/mt). Given that the new deals have increased by $70/mt on a CFR basis since last week, these imported rebar prices in Dubai are expected to rise as of next week. End-users in this market generally buy with three-to-four month deferred payment; however, it is also currently possible to see price levels for cash payment in the Dubai market which are lower by AED 100-150/mt ($27-41/mt) than the above price range for end-users. It is heard that the Turkish producers will likely push for price levels of $1,500/mt CFR and above on a theoretical weight basis as of next week, and, with the continuously increasing demand, it is expected that these offers will likely be accepted.
In the local Italian rebar market, in line with the predictions in our analyses two weeks ago, the base price has increased, though not as much as expected, rising by €10-15/mt ($15-23/mt) to €620-630/mt ($965-980/mt). The Italian rebar producers previously pushed for a base price level of €640/mt ($996/mt) and were not successful. As a result, this week they have set their prices for 10-12 mm rebars at €850/mt ($1,323/mt) due to the sluggish levels of end-user demand. Although it is possible to see traders' price levels of up to €825/mt ($1,284/mt) in the local Italian market, it is expected that the traders will likely catch up with the factory prices as of next week. The Italian producers who have not been selling to Dubai have been offering rebar for export to North Africa at price levels of €815-820/mt ($1,268-1,276/mt) FOB.
End-user demand has also been sluggish in the Spanish market. With scrap prices having remained stable for a long time, base prices have almost remained unchanged compared to the levels of last week. This week, rebar prices in the local Spanish market have been maintaining their previous week's level of €825/mt ($1,284/mt). It is heard that there are offers in Algeria at €855-860/mt ($1,330-1,338/mt) CFR Algeria from Spanish producers, who have been in competition with the Italians in this market.
Last week the Turkish producers were offering and concluding deals at the price level of $1,340/mt FOB Turkey to Eastern Europe and the Middle East (except Dubai). The price level in question is no longer seen as of this week, with the new offers in a price range of at least $1,350-1,370/mt FOB Turkey for September shipment.