Middle Eastern markets buy some rebar from Europe, despite slack demand

Friday, 16 September 2011 15:00:26 (GMT+3)   |  
       

Rebar demand in the UAE is currently better as compared to the depressed levels seen during Ramadan, though not strong yet. Local rebar prices in the UAE this week have remained stable at the range of AED 2,750-2,775/mt ($749-756/mt) ex-works on theoretical weight basis. In the meantime, Turkish mills' rebar offers to the UAE for October shipments still stand at $730/mt CFR on theoretical weight basis. However, buyers in the UAE prefer to monitor the new market trends in the current period, delaying their purchases for the time being, as they hope to enjoy a certain relief with the arrival in October of rebar cargoes from their previous transactions.

In Saudi Arabia rebar demand is currently better as compared to demand levels seen during Ramadan, while market players expect a further improvement in the coming weeks. In the Saudi Arabian market, retail prices for rebar remain at SAR 2,900/mt ($773/mt) and wholesale rebar prices are still at SAR 2,800/mt ($746/mt) - both ex-works and on a theoretical weight basis.

Rebar demand in Yemen is still low and it seems difficult for demand to recover as long as the strong political tension in the country continues. In Yemen's domestic steel market, this week local traders' offers of imported medium sized rebar still stand at the price level of $820-830/mt ex-warehouse, for cash payment, on theoretical weight basis. In the meantime, SteelOrbis has further learned from market sources that Turkish steel mills' rebar offers to Yemen have decreased by $10/mt, after Turkish mills tested an increase of the same amount last week, declining again to $730/mt CFR on theoretical weight basis. However, with the influence of the economic uncertainty in Europe, buyers are keeping their rebar bookings to a minimum, remaining cautious.

Rebar demand in Kuwait is still sluggish and in this week's Kuwaiti domestic rebar market medium size rebar offers have remained at the price range of KWD 218-220/mt ($792-799/mt) ex-warehouse, including taxes, on theoretical weight basis. Amid lack of improvement in rebar demand in the country, Kuwaiti rebar buyers are still following a wait-and-see stance, remaining cautious as regards new purchases. Although there have not been many import offers heard in the Kuwaiti market, Turkish mills' latest rebar offers to Kuwait have been at $730-740/mt CFR, on theoretical weight basis.

In Jordan, rebar prices this week have increased by JOD 10/mt ($14/mt) due to higher domestic scrap prices  and slightly better demand than expected, rising to JOD 660-670/mt ($931-945/mt) ex-works, including eight percent VAT, on actual weight basis, for 30-day deferred payment.

Rebar demand in Israel is still at good levels, while Israeli mills' rebar offers to their local market still stand in the price range of $860-870/mt ex-works, excluding 15.5 percent VAT, on actual weight basis,

In the meantime, Turkish rebar offers to Israel have remained unchanged at $760-765/mt CFR. However, due to the financial uncertainty in Europe, buyers prefer to adopt a wait-and-see stance.

In the Egyptian rebar market, demand has failed to show improvement after Ramadan and remains low. Turkish rebar offers to Egypt still stand at $735-740/mt CFR on actual weight basis, for October shipments. Although Egyptian buyers' price idea is at this price level for immediate shipments, buyers state that they want to delay their purchases for a while, due to tepid demand.

The Iraqi market is receiving rebar import offers from Turkey's Iskenderun region at $740-750/mt ex-works, on actual weight basis. However, considering Turkey's possible intervention in North Iraq, buyers are cautious and are currently maintaining a wait-and-see approach.

Following the sharp depreciation of the euro against the US dollar, some traders in Israel, Lebanon, Jordan and Syria have concluded rebar transactions from southern European mills, though low in volume. Market players are now looking forward to seeing Turkish mills' next move after these transactions.


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