Financial and economic problems have continued to strongly affect the business environment in Lebanon, including activities in the steel market. In particular, inflation in the country in February stood at 190 percent, up from 124 percent in January. Another issue is the weak currency which, combined with the other factors, has had a negative influence on daily trade, investment, and the overall business environment. Therefore, although there are a number of import longs offers in Lebanon, buyers prefer to act cautiously and to monitor the scrap price situation in Turkey in order to evaluate the possible bottom prices for rebar and wire rod.
The Lebanese market is still dominated by North African sellers’ aggressive pricing, not to mention that those origins are not subject to import tax. A few ex-Libya rebar export offers are standing at $660/mt CIF Beirut or around $620/mt FOB, down $10/mt over the past month. In addition, Egypt and Algeria are offering rebar to Lebanon at $650-660/mt FOB and $680/mt FOB, respectively versus $700-730/mt FOB seen in the past month. The freight rate from Algeria and Egypt for 3,000-5,000 mt lots is at $40-45/mt and around $15-20/mt, respectively.
Ex-Turkey rebar offers are standing at $680-690/mt FOB late April-May shipment with around $20/mt estimated freight rate.
In the Lebanese domestic market, retail rebar prices for Turkish origin are at $700-720/mt CPT, versus $750-770/mt CPT last month. Ex-Iran rebar is available at around $630/mt CPT, remaining unchanged over the same period.
In the wire rod segment, traders' local wire rod prices vary at $730-740/mt CPT, versus $775-795/mt CPT, SteelOrbis has heard. Ex-Egypt wire rod offers are available at around $690/mt CFR, while ex-Algeria wire rod offers are estimated at $730/mt CFR.
All import offers are for May shipment. Domestic offers include 11 percent VAT.
Import rebar is subject to five percent import tax in Lebanon except for Arab and EU origins.