In the Middle East, where both construction works and rebar transactions registered a slowdown due to Ramadan, it had been expected that the markets would return to normality once Ramadan concluded. However, the markets in the region have so far failed to gain the desired momentum as most public and private companies extended their holiday break after Ramadan. It is thought that the situation in the Middle Eastern markets will become clearer as of next week after everyone has returned from their holidays.
As rebar prices have not changed this week in the local Turkish market, demand is observed to be growing at an increasing rate in the interior regions of this country. It is expected that demand may register an uptrend in Turkey with the expiry in the coming days of the government's prohibition on construction in coastal areas. As for exports, Turkish producers' rebar and billet offers have remained unchanged, this week again standing at levels of $485-495/mt FOB for rebars and at $460-465/mt FOB for billets. However, it cannot be said that there is strong demand coming from North Africa, the Middle East and Far East, due to the sluggishness in the markets in general.
Taking a look at billet offers, it is observed that ex-CIS billet offers are registering an uptrend, with these offers this week at $440-450/mt FOB CIS Black Sea and Caspian Sea. However, buyers (in the Middle East in this case) are not in a rush to purchase billet due to the holidays and the uncertainty in the market.
Meanwhile, although an uptrend was observed in end-user demand in the local Saudi rebar Arabian market towards the last days of Ramadan prices in this market remained unchanged. In the same period, no great change was observed in the UAE rebar market.
In conclusion, while it is thought in general that the situation in the rebar markets in the Middle East will be somewhat clearer as of next week, it is also thought that the movement in prices will likely be based not only on demand but will also depend on raw materials.