Middle Eastern rebar buyers still delay bookings despite softened Turkish offers

Early this week, the UAE-based  integrated steel producer Emirates Steel Industries (ESI) announced an increase of AED 80/mt ($22/mt) in its domestic rebar price for July shipments, as compared to its price level for June shipments, with the price level rising to AED 2,760/mt ($751/mt) ex-works. However, traders' rebar prices in the country have remained stable. While rebar demand in the UAE has shown some slowdown, local rebar prices in the country this week still stand at the range of AED 2,725-2,750/mt ($742-749/mt) ex-works on theoretical weight basis. Turkish mills' rebar offers to Dubai are at $730/mt CFR on theoretical weight basis, softening by $10/mt as compared to last week. Nevertheless, the price idea of market players in Dubai is at $720-725/mt CFR on theoretical weight basis, as SteelOrbis has been informed.
 
In Saudi Arabia, in line with the ongoing liveliness in the country's construction industry, traders are very active in purchasing rebar and demand remains good. However, with the approach of Ramadan, market players state that they foresee a certain slowdown in the country's rebar demand. In the Saudi Arabian market, 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 demand in Kuwait is significantly low in Kuwait, while domestic medium size rebar offers still stand in the price range of KWD 220-225/mt ($801-820/mt) ex-warehouse, including taxes, on theoretical weight basis. This price range indicates no change as compared to last week. In the meantime, Turkish mills' rebar offers to the Kuwaiti market are currently standing at $745-750/mt CFR for July shipments. However, currently buyers are not inclined to make purchases at this price level.
 
In Yemen, rebar demand is weak, having indicated a further decline. In Yemen's domestic steel market, this week 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 $15-25/mt as compared to last week, dropping to $730/mt CFR on theoretical weight basis. However, buyers are still adopting a wait-and-see stance, as they anticipate a further price softening. SteelOrbis has learned from market sources that due to political turmoil in the country it is still difficult to obtain letters of credit from local banks and therefore only large scale traders are now capable of importing material.
 
Rebar demand in Israel is currently lively, though rebar supply is on the short side. 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. In the context of low inventories of Israeli traders as well as supply shortages, Turkish mills have lately concluded some rebar transactions to Israel at $780-790/mt CFR on actual weight basis. Waiting to receive these cargoes in the next few weeks, buyers are currently adopting a wait-and-see stance. 
 
In Egypt, rebar demand is lively and local buyers have lately concluded some rebar transactions from Turkey at $725-730/mt CFR on actual weight basis. Egyptian buyers state that they expect prices to soften further, while these buyers are observed to be delaying their purchases for the time being.