Middle Eastern rebar buyers still wait despite Turkey’s reduced offers

Friday, 21 October 2011 11:45:13 (GMT+3)   |  
       

This week, rebar demand in the UAE has remained limited to demand coming from continuing small scale construction projects. As a result, local rebar prices in the UAE have this week shown some softening in line with weak domestic demand, declining to AED 2,700-2,725/mt ($735-742/mt) ex-works on theoretical weight basis. In the meantime, Turkish mills' rebar offers to the UAE have decreased by $10/mt as compared to last week, declining to $680-685/mt CFR on theoretical weight basis, for late October and early November shipments. Slightly lower offers are also available for large tonnage orders. Buyers in the UAE state that they first want to see the price decline expected to be announced by Emirates Steel Industries (ESI) before they conclude new bookings.
 
In Jordan, there is a certain amount  of rebar demand, though it is not sufficiently strong. SteelOrbis has learned that medium sized rebar prices in Jordan have decreased slightly by JOD 5/mt ($7/mt), due to softened domestic scrap prices,  to JOD 645-655/mt ($909-923/mt) ex-works, including eight percent VAT, on actual weight basis, for 30-day deferred payment. Meanwhile, similar to the international rebar markets, buyers are currently delaying their purchases in order to see bottom prices.
 
Rebar demand in Saudi Arabia is at good levels and market retail prices for rebar have remained 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. Although a few traders with high inventories are offering slightly lower prices, this softness in offers is considered to be just temporary.
 
Rebar demand in Yemen is still significantly low, while prices have further decreased by $10/mt due to the strong political tension in the country, after last week's price decline by the same margin. Accordingly, in Yemen's domestic steel market, this week local traders' offers of imported medium sized rebar stand at the price level of $800-810/mt ex-warehouse, for cash payment, on theoretical weight basis. In the meantime, SteelOrbis has further learned from market sources that Turkish steel mills' rebar offers to Yemen have also decreased by $10/mt as compared to last week, declining to $680-685/mt CFR on theoretical weight basis. However, buyers prefer to wait for prices to hit the bottom before concluding purchases.
 
In this week's Kuwaiti domestic rebar market, medium size rebar offers have remained at the price range of KWD 218-220/mt ($790-797/mt) ex-warehouse, on theoretical weight basis. Rebar demand in Kuwait is still weak. Turkish rebar offers to Kuwait have decreased by $5-10/mt to $685-690/mt CFR on theoretical weight basis. However, anticipating these offers will soften further, Kuwaiti buyers prefer to delay their bookings in order to avoid risks.
 
In Egypt, although rebar demand is low, buyers in the country are monitoring Turkish rebar offers due to their competitiveness. Early this week, Turkish mills' rebar offers to the Egyptian market had declined to $690/mt CFR. However, towards the end of the week, these offers have further decreased by $15/mt to $675/mt CFR on actual weight basis for prompt shipments. Although Egyptian buyers intend to make new purchases, since the price trend is downward, buyers first want to see prices reach the bottom.
 
Lately, rebar offers to Iraq from Turkey's Iskenderun region had softened and had declined to $660-665/mt ex-works on actual weight basis. However, buyers continued to delay their purchases. For now, there is no rebar demand coming to the Turkish mills from northern Iraq.

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