The longs market in Lebanon is now in wait-and-see mode, wanting to understand how the recent decisions of the country’s government will affect daily business life. Early this week, the Lebanese parliament passed a budget using an exchange rate for customs tax revenues that lies far below the market value of the Lebanese pound. “This decision will put extra pressure on Lebanese traders,” a source said.
Currently, local retail rebar prices are available at $680-710/mt CPT, versus $700-710/mt CPT a month ago. The offers include 11 percent VAT. “Today, [after the recent government decisions] the estimated retail prices may be increased by around $15-20/mt for the domestic market,” another market player told SteelOrbis.
Sources report ex-Iran rebar offers were standing at $600/mt CFR Beirut last week. However, many avoid dealing with Iran due to sanctions, though the price is considered to be attractive. Instead, Turkish mills succeeded in selling small tonnages of rebar and wire rod to Lebanon at the end of last week, at around $680/mt CIF Beirut, with average freight estimated at around $20/mt.