Middle Eastern rebar market still sluggish despite reduction in offer prices

Wednesday, 05 October 2011 18:00:28 (GMT+3)   |  

In the UAE domestic market, local rebar prices this week have remained unchanged at AED 2,750/mt ($749/mt) ex-works on theoretical weight basis, while rebar demand in the country is still weak. In the meantime, Turkish mills' rebar offers to the UAE stand at $700-705/mt CFR on theoretical weight basis. Buyers in the UAE are currently not inclined to book import rebar and they prefer to watch the market trends instead since they are hoping to find some relief with the arrival of rebar cargoes from Turkey in the coming days, while the gap is also small between prices of Emirates Steel Industries (ESI) and Turkish offers and, finally, as local rebar demand is quiet. 

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 ($746/mt) - both ex-works and on a theoretical weight basis. Rebar demand in the country is somewhat better as compared to other Middle Eastern markets, while market players foresee that demand will remain firm and current prices will be maintained in the coming period.

In the Yemeni domestic steel market, rebar demand is still significantly low due to the strong political tension in the country. However, this week local traders' offers of imported medium sized rebar still stand at the price level of $820-830/mt ex-warehouse, for cash payment, on theoretical weight basis. In the meantime, Turkish steel mills' rebar offers to Yemen have decreased by $10/mt as compared to last week, declining to $700-705/mt CFR on theoretical weight basis. However, buyers prefer to monitor price trends rather than conclude purchases. 

In Kuwait's domestic market rebar demand is also weak. In this week's Kuwaiti domestic rebar market medium size rebar offers have remained at the price range of KWD 218-220/mt ($787-795/mt) ex-warehouse, on theoretical weight basis. Kuwaiti buyers, polled by SteelOrbis, state that they are waiting for Turkish rebar offers to the country to fall below $700/mt CFR on theoretical weight basis, before switching to buying.

In the Israeli rebar market, due to the strengthening of the US dollar against the Israeli shekel, rebar prices on dollar basis have been updated downwards, while prices on shekel basis have increased. Accordingly, Israeli mills' rebar offers to their local market stand in the price range of $820-830/mt ex-works, excluding 15.5 percent VAT, on actual weight basis. Rebar demand in the country has witnessed some slowdown due to the intermittent holidays in Israel up to October 25. In the meantime, Turkish rebar offers to Israel have decreased to $725-730/mt CFR, on actual weight basis. However, Israeli buyers are not in a hurry to conclude bookings due to the holiday period and they are adopting a wait-and-see stance for the time being in order to see future price trends. 

In Egypt, rebar demand is reportedly low. Turkish mills' rebar offers to the Egyptian market stand at $700-705/mt CFR on actual weight basis for prompt shipments, softening lately by $5/mt. While some buyers have already concluded some transactions at the price range of $705-710/mt CFR, while others prefer to monitor prices closely.

In Iraq, rebar offers given from Turkey's Iskenderun region have shown some softening in line with the further strengthening of the US dollar against the Turkish lira, declining to $710/mt ex-works. Some buyers have concluded rebar bookings at this price level, while some other buyers are currently adopting a wait-and-see stance, since they consider prices may further soften if the Turkish lira depreciates against the US dollar.


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