The Lebanese steel market, which has been under economic and financial pressure for a while, is now facing an additional challenge due to its proximity to the ongoing conflict between Israel and Hamas. The tension results in increased freight rates and a lack of the vessels in the area, which is an obstacle for longs imports into Lebanon in particular. “[Shipping cargoes to the region is somewhat dangerous. Some vessels are avoiding calling at Lebanese ports],” a source told SteelOrbis. Currently, Lebanese buyers are receiving the most attractive offers from North Africa and neighboring Saudi Arabia, while rebar prices from Turkey seem less competitive due to import duty.
Currently, Egypt is offering rebar and wire rod at $550-560/mt FOB minimum, versus $560-575/mt FOB seen last month. The freight is estimated at around $18-20/mt. Sources report suppliers from Saudi Arabia are offering at $530/mt FOB, while freight is estimated at a minimum of $30-35/mt for large lots. In addition, a supplier from Libya has been offering rebar at $555/mt FOB, with the estimated freight to Lebanon is around $20/mt for 10,000 mt cargoes.
The offers from Turkey are a little higher than from those from other countries due to the currently higher production costs in Turkey. A few Turkish mills are testing $540-550/mt FOB, versus $565/mt FOB for rebar or around $560-565/mt CFR Beirut, down by around $15-25/mt over the past month. Ex-Turkey wire rod is offered at $560-570/mt FOB or $575-585/mt CFR Beirut, down by around $20/mt over the same period.
Local rebar prices are at around $640-670/mt, versus $665-680/mt CPT a month ago. Moreover, local wire rod prices at are around $660-685/mt CPT.
All local prices include 11 percent VAT.