Decent levels of activity have continued to be seen in the Middle East rebar market. Traders have been experiencing difficult times in the continuously declining market since end-users are limiting themselves to daily purchases of small tonnages, even though demand from end-users is high. In addition, stocks are melting at a very slow rate. Rebar prices have this week maintained their softening trend in the UAE, which has been the star performer of the Middle East. In the local UAE market Chinese origin material has this week been at AED 2,500-2,550/mt ($680-694/mt) delivered to customer, while Turkish origin material has been in a price range of AED 2,700-2,800/mt ($735-762/mt) delivered to customer, indicating a drop of AED 150-200/mt compared to last week. UAE traders had concluded rebar deals at prices of $1,480-1,500/mt CFR Dubai in June and early July when prices were trending up; however, it is surprising that that they have this week been trying to sell rebars to Iran due to the current global downtrend.
The situation in the Saudi Arabian market has been similar to that in the UAE this week. Rebar price levels in the local Saudi Arabian market have this week softened due to local traders' high stock levels and end-users' reluctance to take risks and their insistence on buying small tonnages. The rebar price levels in Saudi Arabia have this week been at SAR 3,600-4,100/mt ($961-1,095/mt).
This week there has been an average gap of TRY 50-70/mt between the prices at the start and end of each day in the local Turkish market. 8-400 mm rebar prices were at TRY 965-1,020/mt earlier this week. Following the billet price cut of TRY 75/mt announced by a local producer on Tuesday, the rebar price level registered a decline of TRY 20-30/mt. Towards the end of the week, on the back of the general pessimistic expectations, price levels have declined to TRY 910-930/mt. The Turkish producers have also had to reduce their export offers compared to last week. Turkish producers have this week offered to the Middle East (including the UAE), Eastern Europe and the Far East at the price range of $520-600/mt FOB. It is also observed that there have been variations in the price range depending on the tonnages involved.