Middle Eastern rebar buyers anticipate further softening in Turkish offers

Local rebar prices in the UAE this week still stand in the range of AED 2,725-2,750/mt ($742-749/mt) ex-works on theoretical weight basis, while demand in the domestic market is moderate. Turkish mills' rebar offers to Dubai are at $740/mt CFR on theoretical weight basis. Inventories of traders in Dubai are at diminished levels. However, anticipating demand will further regress in line with prices, buyers who need to purchase material for July are currently delaying their bookings.
 
In the Saudi Arabian domestic market, while demand is still good, retail prices for rebar remain at SAR 2,900/mt ($773/mt) and wholesale rebar prices are still at SAR 2,800/mt ($747/mt) - both ex-works and on a theoretical weight basis. Rebar supply is insufficent in the local market, as domestic producers have reduced their capacity utilization. Market players expect producers to supply needed sizes in the very near future.
 
The Yemeni domestic rebar market has remained quiet this week, while local traders' offers of imported medium sized rebars still stand at the price level of $820/mt ex-warehouse, for cash payment, on theoretical weight basis. In the meantime, Turkish steel mills' rebar offers to Yemen have declined by $20-30/mt as compared to last week, dropping to $745-755/mt CFR on theoretical weight basis. However, since buyers are currently adopting a wait-and-see stance, it is unlikely that buyers will accept these offers.
 
In this week's Kuwaiti domestic rebar market there have not been any significant changes, while demand is significantly low in the country. In Kuwait, medium size rebar offers still stand in the price range of KWD 220-225/mt ($800-818/mt) ex-warehouse, including taxes, on theoretical weight basis. In the meantime, Turkish mills' rebar offers to the Kuwaiti market, which were standing at $760/mt CFR early this week, have declined to $750/mt CFR on theoretical weight basis, for July shipments. However, currently buyers are not inclined to make purchases at this price level.
 
Rebar demand in Israel is currently lively, in line with good activity levels in the country's construction industry. Israeli mills' rebar offers to their local market still stand at the levels of $830-840/mt ex-works, excluding 15.5 percent VAT, on actual weight basis. Turkish mills' latest rebar offers to Israel stand at $780-790/mt CFR on actual weight basis. However, finding Turkish offers high, buyers are currently adopting a wait-and-see stance. Rebar supply is currently low in the country and, thanks to demand coming from the construction industry, buyers are expected to resume their purchases in the coming days.
 
Last week, rebar demand was at good levels in Egypt, while rebar supply has remained on the short side. Thus, Turkish mills concluded some transactions to Egypt at below $750/mt CFR. However, this week, no booking requests have been reported in Egypt, since Egyptian buyers are waiting for cargoes from previously concluded transactions to arrive.
 
In the Iraqi market, buyers prefer to delay their rebar purchases for the time being, as they consider current price levels to be high. Rebar offers given from Turkey's Iskenderun region to Iraq are currently standing at $750/mt ex-works. However, buyers state that they expect these offers to show some softening in the coming days.