The construction sector has been continuing to show strength in the Middle East, contrary to the situation in South America, US and Turkey. Almost all Turkish producers selling to Dubai have this week concluded deals for different tonnages at price levels of around $1,400/mt CFR on a theoretical weight basis. However, it is reported that the new offers to this market are at $1,475/mt CFR Dubai on a theoretical weight basis. Currently in a price range of AED 5,500-5,600/mt ($1,497-1,525/mt) in the UAE domestic market, rebar prices in this market may see an increase next week.
Looking at the overall European rebar market, it is observed that the weakness in rebar demand in the local Italian and Spanish rebar markets has been continuing. While the rebar price level in the local Spanish market is at €825/mt ($1,271/mt) ex-works excluding VAT, traders' price levels as low as €790/mt ($1,217/mt) may be observed.
The rebar price level was at €850/mt ($1,310/mt) ex-works, excluding VAT, in the local Italian market last week and a base price increase of €20/mt ($31/mt) had been expected for the early days of the current week. However, no increase in the base price has been seen as of today, Friday, as we approach the end of the 24th week. As of this week, the rebar price level in the local Italian market has been at €850-860/mt ($1,309-1,325/mt) ex-works, excluding VAT.
Rebar prices have been maintaining their strong position in Italy and Spain in spite of the sluggish demand. It could be said that the main reason behind the abovementioned situation is that there will be no further threat of sales from Turkey to Europe in the upcoming months since the Turkish producers have filled their order books until mid-September thanks to the deals they have concluded to the Middle East.
Other Turkish producers, who have not been making sales to the generally preferred Dubai market for several reasons, have been concluding deals to Eastern Europe and markets in the Middle East other than Dubai. These producers have been concluding deals to markets other than Dubai at the price level of $1,330/mt FOB Turkey. It is heard that some of these producers have stopped their sales after the conclusion of some deals at the abovementioned price level. It is expected that the new offers from these producers may be in the range of $1,340-1,350/mt FOB Turkey.