Increasing billet prices depending on the rises seen in scrap prices have led to an increase in rebar prices in certain Middle Eastern markets. In Saudi Arabia, where rebar prices are already at high levels in the local market, prices have not shown any increase. Meanwhile, although import rebar offers have increased for the UAE, local prices have maintained their levels in the UAE domestic market where rebar prices have registered occasional fluctuations. However, it is observed that rebar prices have risen in Turkey, Syria and Jordan.
Turkish mills' rebar export offers, which deteriorated to $425/mt FOB in the last week of May, have this week increased to the range of $460-470/mt FOB Turkey. In line with the increases seen in scrap and billet prices, the increases observed in rebar export prices have not led to an improvement in terms of end-user demand for finished steel in the Turkish domestic market. Despite the ongoing construction season and the favorable weather conditions, rebar purchases have been trending slow in Turkey. Thus, the indication is that the recent price increases are based on raw material prices and not on purchasing activities.
Turkish mills' rebar export offers given to the UAE have increased to the range of $470-480/mt CFR Dubai on theoretical weight basis for July shipments. It can be said that the offers in question are at normal levels, considering the increases seen in billet prices.
Meanwhile, the construction season has been going well in Jordan. Difficulties were even reported in this country with regard to cement supply in previous weeks; however, this problem has since been resolved. Thus, market players are expecting positive developments in the coming days in the Jordanian construction sector following its temporary slowdown.