Following last week's price increases in most of the Middle Eastern rebar markets, buyers in the region started to wait for the Turkish mills' new rebar export offers. After suspending their scrap bookings for a while in anticipation of a price softening, this week Turkish steel producers have returned again to the scrap market for purchases and new scrap price levels have started to emerge. Rebar demand in the Middle East is foreseen to liven up in line with Turkish mills' anticipated new rebar export offers, which will be shaped depending on the new scrap price levels.
In this week's UAE domestic rebar market, rebar prices were in the price range of AED 2,650-2,700/mt ($722-735/mt), depending on payment terms. After the price hike by local rebar producers, traders' rebar sales prices have failed to move beyond AED 2,700/mt. Since Turkish origin rebar shipments have been booked to arrive in the UAE in February, no shortage in rebar supply is expected in the region. Rebar demand from local importers is expected to increase following Qatar Steel's anticipated new rebar price and also in line with the stabilization of Turkish mills' rebar prices. This week, some Turkish mills' rebar offers to the UAE were at $705-710/mt CFR on theoretical weight basis. ($1 = AED 3.673)
In the Kuwaiti rebar market, prices have not showed any significant change this week. Buyers in the country have remained reluctant to conclude new purchases, due to the previously increased rebar prices, resulting in reduced activity in the local rebar market. On the other hand, due to the 12-day public holiday in Kuwait starting from February 17, rebar transactions in the Kuwaiti market may slow down further in the coming period.
In the Saudi Arabian rebar market, with local producers' keeping their rebar prices unchanged, spot rebar prices have also trended sideways. Meanwhile, Turkish mills' rebar offers to the Saudi Arabian market have been standing at $705-710/mt CFR. In Saudi Arabia, local rebar prices are still expected to move up.