Latest situation in the Middle East rebar market

In the local UAE rebar market, prices softened early this week under the impact of low demand. Rebar prices from traders were generally standing at AED 2,500-2,525/mt ($680-687/mt) delivered to customer. On Wednesday, April 20, local integrated steel producer Emirates Steel Industries (ESI) announced its rebar price level for May shipment at AED 2,480/mt ($675/mt) delivered to customer, indicating a drop of AED 170/mt ($46/mt) from April shipment prices. Prior to this announcement, rebar offers by Turkish producers to Dubai had moved up by $10/mt compared to the previous week to reach $670/mt. Offers even above this level had also started to be heard. The market is now watching to see how Turkish producers will react to the new price level issued by local producer ESI.
 
Demand for rebars in Saudi Arabia is performing better as compared to other Middle Eastern markets. In view of the improving situation in Saudi Arabia, producers have started to raise their production levels. In the meantime, local producers have not changed their prices for rebars and market players have also indicated their intention to maintain prices at current levels.
 
Demand in Jordan continues to remain slow, while scrap prices are firm due to tight supply. Finished steel producers are currently trying to raise their invetory levels instead of supplying material to the market, considering that prices may move upwards soon.
 
In Yemen, political turmoil continues to overwhelm the country while the rebar price range has widened in the market due to the uncertain market conditions. Rebar offered for May on theoretical basis currently stands at $770-790/mt ex-warehouse, while there are also offers at $780/mt ex-works. Turkish producers are in the meantime offering rebars to Yemen for May shipment at $680/mt CFR; however, demand for rebars in this market is slow. Furthermore, banks are not willing to take risks on letters of credit, or, if they are willing, they first request 110 percent deposits. This situation creates difficulty for possible business transactions.
 
In Israel, the reglious holiday during April 19-26 has resulted in silence in the domestic rebar market, and the market is expected to resume normal activity levels from May 1 onwards.
 
In Iraq, buyers have concluded some rebar tonnages from Turkey. The most recent sales concluded from the Iskenderun region of Turkey to Iraq were up by $5/mt to reach $665-670/mt ex-works, while buyers in Iraq are for the time being a little cautious when approaching the new offer levels.