Middle East rebar market activity still on slow side due to political uncertainty

Due to the ongoing political turmoil in some Middle Eastern countries, rebar demand in this region has continued to weaken, with buyers delaying their rebar purchases given the uncertainty in the market.
 
In this week's UAE rebar market, prices have shown some softening after Turkish mills' low rebar export offers to the country last week, with actual rebar transaction prices in the UAE standing at AED 2,650/mt ($721/mt) this week. Last week, a Turkish steel producer concluded a rebar transaction in Dubai at $660-665/mt CFR on theoretical weight basis ($1 = AED 3.673). Subsequently, buyers in Dubai have been more active in making inquiries in the rebar market. Despite slow domestic demand, traders in Dubai are expected to start their rebar bookings soon in order to increase their rebar inventories for the coming months.
 
Due to the political uncertainty prevailing in the Middle East and also due to the rebar price softening in some local markets, Saudi Arabian steel mills are no longer expected to increase their rebar prices. Turkish mills have concluded some rebar transactions to this country lately, with the latest transaction price at $670-675/mt CFR.
 
Despite the political uncertainty in Yemen, Yemeni traders are active in the rebar market due to their reduced inventories. SteelOrbis has learned that a Turkish steel producer has concluded a transaction to Yemen at $670-675/mt CFR on theoretical weight basis. Early this week, Turkish mills' rebar offers to this country were at $670-680/mt CFR on theoretical weight basis. Meanwhile, in the Yemeni domestic market, rebar prices are at $750-755/mt on theoretical weight basis.
 
In the Jordanian market, again due to the uncertain political situation, rebar transaction activity has slowed down, while rebar prices have continued to decline. This week, domestic rebar prices in Jordan have regressed to JOD 580/mt ($818/mt) including taxes ($1 = JOD 1.409).