While Egypt was the leading rebar export market for Turkey in the Middle East and North Africa in the early months of 2009, this country significantly cut back its rebar purchase activity by the last week of April. Rebar price offers in the international markets were on a downtrend up to the last two weeks. However, when Turkish producers started to buy scrap to replenish their low scrap stocks, international scrap prices (which were already at strong levels thanks to scrap demand from the Middle East) climbed up further. On the back of rising scrap prices, semi-finished and finished steel products have registered an approximate increase of $40-50/mt in the last two weeks. Thus, scrap prices can be considered as the main reason behind the rebar price uptrend in the Middle East and Turkey.
However, the rebar markets in the Middle East and Turkey got excited this week as Egyptian buyers have again started to ask for prices as of the beginning of the week. While it is observed that there is a price gap of $10-20/mt between the Egyptian buyers' desired levels and the Turkish producers' offers to the region, market observers are waiting to see if the Egyptian importers will start to buy again in the coming weeks.
It is hard to say that the end user demand in Middle East has registered an uptrend in this week. It is mentioned that rebar demand from the region (from the UAE in particular) may gain intensity in July due to approach of Ramadan. While ex-Turkish rebar offers to the UAE have been reported at $455-465/mt CFR UAE in the past week, it is heard that the price levels of these offers are currently on an uptrend.
Increased excitement has also been seen in the Turkish domestic rebar market this week. The price increase in the international markets has triggered the price uptrend in the Turkish domestic market. Traders are observed to be attempting to keep their stock levels unchanged as they think that the prices may register a further uptrend. Market players in general are now wondering how long the positive mood in Turkey and the Middle East will last.