Since Egyptian rebar importers have recently slowed down their rebar purchase activity and as rebar demand from the Middle East has been weak, Turkish producers' rebar offers to the international markets have this week again indicated a softening trend. Meanwhile, on the back of this softening in Turkey's export offers in Turkey, price levels in the local Turkish market, which has been keeping a close eye on the export situation, have also registered a downtrend.
This week it has been heard that the Libyan government is accelerating infrastructure projects and that this local market is turning its attention to Turkish origin material. However, it is reported that demand for rebar from this country is not at significant levels at the present time.
No increase in end-user rebar demand has been observed in the Middle East this week. However, local traders in the UAE think that rebar prices will not drop below the current levels. Turkish producers' rebar offers to this country are currently standing at $470/mt CFR UAE.
The upcoming days are expected to bring greater clarity as regards the price direction in scrap, and consequently also in billet. It is widely accepted that, in addition to end-user demand, the prices of raw materials and semi-finished products have been influencing rebar prices. Thus, the situation as regards scrap prices will be an important factor in determining rebar prices in the Middle East, Turkey and North Africa in the coming days.