Jordanians weigh up options for billet and rebar imports amid Syrian crisis

The ongoing strife in Syria, a major passageway for imports to Jordan, is still negatively affecting imports into Jordan. With the recent intensification of the violence in Syria, security at the Jordan-Syria border has been tightened and Jordanian billet importers bringing in materials via Syria have started to face significant difficulties. Jordanian rolling mills' Ukrainian origin billets have been held up at the port of Tartus in Syria or at the Jordan-Syria border. Accordingly, it is thought that Jordanian rolling mills may encounter problems in their production activities in the coming period.
 
However, the limited transaction volume in the Jordanian market has prevented these import-related problems from being reflected in higher market prices. Accordingly, medium sized rebar prices in Jordan are still ranging at JOD 600-610/mt ($846-860/mt) ex-warehouse on actual weight basis, including eight percent local taxes and for 30 to 45-day deferred payment.
 
On the other hand, with imports via Syria almost fully blocked, Jordanian buyers are still not opting to import their needs via Israel. Thus, the only alternative for Jordanian importers is to use Aqaba port and the Suez Canal. However, since using this destination means a $35/mt increase in freight costs, Jordanian buyers are not inclined to choose this option. Nevertheless, if the situation in Syria gets worse or if demand in Jordan increases, market sources state that this last option may then be given greater consideration.
 
JOD 1 = $1.41