Activity in Lebanon’s import rebar market is at a slow pace due to unfavorable weather conditions and ongoing liquidity issues. According to the IMF, “Still, high uncertainty, banking sector restrictions, and expensive and very limited electricity supply continue to hinder economic activity”. Most North African suppliers are still focusing on the Lebanese rebar market. Sources report that Algeria, Egypt, Libya and Saudi Arabia are applying aggressive pricing strategies to generate sales. Italian producers are not so active, preparing for the summer vacation season.
Local rebar prices are at around $680/mt CPT, including VAT. A few rebar offers from Saudi Arabia and Libya have been heard at $580/mt FOB and $585/mt FOB, respectively. Egypt is at $560-575/mt FOB for both rebar and wire rod, with the estimated freight to Lebanon at around $15-18/mt. One of the Algerian mills has been offering at $550/mt FOB for wire rod and at $540/mt FOB for rebar, equal to around $590/mt and $580/mt CFR, respectively.
Most ex-Turkey rebar offers were at $575-580/mt FOB for August shipments earlier this week, versus $625-630/mt FOB last month. Following the recent fall in import scrap prices, a few Turkish mills has started testing $565-570/mt FOB recently, SteelOrbis has heard.
Domestic offers include 11 percent VAT.
Import rebar is subject to five percent import tax in Lebanon except for Arab and EU origins.