Demand still not fully recovered to desired levels in the Middle East rebar market

Thursday, 14 October 2010 17:00:58 (GMT+3)   |  

In the Middle East rebar market, both transaction volumes and demand have recovered when compared to the slowness in the global markets. Nevertheless, the revival that was expected for the post-Ramadan period has still not occurred.

In the local UAE rebar market, import volumes have not shown significant changes, while general transaction prices in the UAE have remained at the level of AED 2,300/mt. Turkish producers' rebar offers to the UAE market stand at the level of $590-600/mt CFR on theoretical weight basis. Buyers are still abstaining from purchases of Turkish rebar, since it is still uncertain whether the local UAE producers will increase their rebar prices for November.

In the Saudi Arabian market, rebar demand continues to be at better levels as compared to other Middle Eastern markets. Meanwhile, traders that sell imported material are selling Turkish origin rebar below the level of SAR 2,800/mt due to the shortage of cash. In Saudi Arabia, local producers have not revised their pricing policies yet, while SABIC has not yet announced the price adjustment which the market had been anticipating.

This week, it is known that importers in the Yemeni market have received import offers, especially from Turkey, with the price levels in these offers seen to be standing at $585-610/mt CFR on theoretical weight basis, and it is also heard that some producers which have been aggressive as regards price quotations have concluded transactions at lower levels.

After the rebar cargos sent from Turkey to Yemen, Turkish producers which are still active in the Yemeni market are observed to have returned to the market and to have started to give offers again. Demand in the Kuwaiti market remains at good levels as rebar inventories have declined.

While a large number of mills in the Jordanian market have not yet restarted production, rebar demand seems to be better than in other Middle Eastern countries. Rebar prices in the Jordanian market are standing at the level of JOD 550-560/mt including VAT.


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