During the January-July 2008 period, rebar prices in the Middle East had skyrocketed on the back of surging demand from the UAE. However, while the UAE's rebar imports from Turkey decreased by 60 percent year on year in January 2009, Egypt's rebar imports from Turkey were in a healthy state for the same month. With 293,000 mt of rebar imports from Turkey in Janaury, Egypt ranked as the number one destination for Turkish rebar exports during the month in question. Turkey's other main rebar export destinations in January 2009 in order of importance were: Iraq with 110,000 mt, UAE with 103,000 mt, Algeria with 71,000 mt, Libya with 54,000 mt and the US with 37,000 mt (January 2009 data from the General Secretariat of the Istanbul Mineral and Metals Exporters' Association (IMMIB)). Remarkably, while Turkey's total rebar exports stood at 730,000 mt in January 2008, Turkish producers succeeded in boosting this figure to 963,000 mt in January 2009 in spite of the global crisis. However, although the Turkish rebar export figures have registered an uptrend in January 2009, the price levels of export offers are at far lower levels compared to the same month last year.
Troubled times have also been observed in the Turkish domestic rebar market this week. Although as of mid-week rebar prices from traders in some regions have been seen below the level of TRY 800/mt ex-warehouse including VAT ($397/mt ex-warehouse excluding VAT), no uptrend in end-user demand has been observed as a result. While this week there has been less availability of 8 mm rebar overall in Turkey, it is observed that the range of prices for 8-12 mm rebars has this week registered a strong expansion in Izmir compared to the other regions. Turkish producers' export rebar offers have this week declined to levels of $440-450/mt FOB Turkey.
End-user rebar demand in Egypt has been at higher levels compared to demand in neighboring countries in the Middle East. While rebar prices in the Egyptian domestic market are at $560-580/mt ex-works excluding five percent duty, the producers in Egypt are heard to be complaining about the cheap import prices. Meanwhile, Turkish producers' rebar export offers to this country have been at $440-450/mt FOB Turkey.
Looking at end-user rebar demand in the Middle East as a whole, this week a distressed wait-and-see atmosphere has continued to be observed. While import and local production rebar prices in the UAE domestic market have still been at AED 1,750-1,850/mt ($476-504/mt) ex-warehouse, end-user demand has been at low levels. However, UAE traders have continued their purchase activity, as this week there have been some deals from Turkey at the price level of $460/mt CFR Dubai.
On the other hand, end-user rebar demand has been sluggish this week in Saudi Arabia, where a certain increase in activity had been observed in recent weeks. However, the demand in question failed to maintain its levels. While it is heard that some traders in Saudi Arabia have this week been asking Turkish producers for rebar offers, local rebar prices in Saudi Arabia have this week remained unchanged compared to last week.