Following Turkish producers' price increases in their rebar offers given to the Middle Eastern market, due to increased raw material costs, rebar prices in markets to which Turkish mills are offering have also started to indicate upward trends.
While the ongoing increase in activity in Iran supports the sales volumes and prices of Turkish producers in their activity in this country, the continuing demand in Iran and Iraq also supports Turkish mills' price levels in the Middle East in general. This week, Turkish producers' rebar offers to the Middle East have been standing at $595-605/mt.
In the UAE rebar market, following Emirates Steel's price drop last week, rebar prices in the domestic market declined; however, the market has not witnessed any significant improvement in demand. After Turkish mills' price increases this week, rebar offers given to the UAE market have reached $605-610/mt CFR on theoretical basis. Meanwhile, importers in Dubai think that price levels in the offers for November and December shipments are still high, considering the recent decline in rebar prices in the domestic market.
While demand for rebar remains strong in the Saudi Arabian market, rebar prices of local producers have not shown any change since last week. While rebar offers given to the Saudi Arabian market have risen this week, after transactions of Turkish mills at $585-590/mt CFR on theoretical basis, buyers do not appear to be interested in offers at higher prices.
In the Yemeni rebar market, local traders have increased their local prices, in line with the increased price levels of Turkish mills. However, buyers in the Yemeni market consider that continuing stability is needed in Turkish producers' offers, for offers at $610-620/mt CFR on theoretical weight basis to be accepted.
Activity in the Middle Eastern rebar market is expected to slow down before and after the approaching Feast of Sacrifice holiday. However, prior to this, demand from buyers is thought likely to increase, provided that raw material prices trend sideways in the international markets and if rebar producers manage to maintain their price levels.