Lebanon continues to face slow business activity in the longs sector amid persisting economic and financial issues whic have been weighing on trading operations. As a result, local importers prefer to deal for Arab origin rebar and wire rod since there is no tax for such material, while some negotiate for ex-Russia longs given the low price due to the toxicity of the origin.
Particularly, offers from Egypt for rebar and wire rod have been set at around $620-630/mt CFR for small lots, while Saudi Arabia is reported to be offering at $650/mt CFR mainly for rebar. At the same time, Russian traders have been offering $620-630/mt CFR to Lebanon, but some of them, according to sources, are ready to accept around $590-600/mt CFR Beirut for mixed longs batches.
Lebanese importers underline that the overall cost of customs clearance is obviously smaller for Arab origins, which are not subject to import duty. “The import customs cost for Arab origin rebar is around $80/mt, while imports from other countries means expense of around $120-130/mt,” a local source told SteelOrbis.
Last week, ex-Turkey rebar offers were at $640/mt FOB. However, even though this has decreased by $40-50/mt over the past month, such a level is not considered workable in Lebanon.