Middle Eastern markets monitor Turkish rebar price hikes, demand remains quiet

Early last week, the UAE-based integrated steel producer Emirates Steel Industries (ESI) had pushed up its rebar prices by AED 75/mt ($20/mt) to AED 2,680/mt ($730/mt) ex-works. After this move, local rebar prices in the UAE local market had seen an upwards correction and had settled at AED 2,675-2,700/mt ($728-735/mt) on theoretical weight basis. Turning to the current week, local rebar prices in the UAE have increased again, rising by AED 50/mt ($14/mt) to AED 2,725-2,750/mt ($742-749/mt) on theoretical weight basis. However, the rising temperatures have negatively impacted rebar demand in the country. On the other hand, early last week Turkish mills had concluded some rebar transactions to the Dubai market at $705-710/mt CFR on theoretical weight basis.  For the past week, traders in Dubai state that they have not heard any Turkish offers, while Turkish offers were not heard last weekend either. Buyers in the UAE prefer to delay their purchases in order to monitor the increased prices.
 
Rebar demand currently lacks strength in Kuwait, while medium size rebar offers stand in the price range of KWD 220-225/mt ($800-818/mt) ex-warehouse, including taxes, on theoretical weight basis. With the arrival of cargoes from previously concluded ex-Turkey rebar bookings at $690/mt CFR on theoretical weight basis to the Kuwaiti market this week, rebar supply is currently higher than demand in the country. Meanwhile, local market operators state that they prefer to adopt a wait-and-see stance as regards the increased Turkish offers for the time being.
 
In the Saudi Arabian domestic market, rebar prices have been stable. While rebar demand is still good in the country, market players state that they are keeping a close eye on Turkish mills' increasing offers. SteelOrbis has also learned that no transactions have been concluded at Turkish mills' increased offer levels.
 
With the political turmoil still strongly felt in Yemen, rebar demand in the country is low. Traders' latest medium size rebar offers to the domestic market have been at $795-800/mt ex-warehouse on theoretical weight basis for advance payments.
 
Early this week, Egypt's largest rebar producer EZZ Steel increased its rebar price by EGP 200/mt ($34/mt) for June to EGP 4,650/mt ($783/mt) ex-works. While rebar demand is lively in Egypt, the latest import transactions have been concluded at $720/mt CFR. However, following Turkish mills' consecutive steep price hikes, it is still unclear how Egyptian market players will react.
 
Last week, rebar transactions to Iraq from Turkey were concluded at $720/mt ex-works, on actual weight basis. In the current week, rebar offers given from Turkey's Iskenderun region to Iraq have risen following the price increases seen in the Turkish domestic market. The latest offers have been at $730/mt ex-works, while offers above these price levels have begun to emerge. However, Iraqi buyers are currently adopting a wait-and-see stance vis-à-vis these increased offers.