The largest rebar producer in Saudi Arabia hiked its prices last weekend. With other mills in Saudi Arabia following suit, the price level of 8-12 mm rebar in Saudi Arabia's domestic market increased to SAR 3,100-3,500/mt ($828-934/mt) ex-works on theoretical weight basis. It is being said in the market that the domestic producers may announce further hikes. The rapidly rising Saudi Arabian market is attracting Turkish and Egyptian producers. It is heard that a booking has been concluded from Turkey this week.
With regard to the Egyptian market, after Egyptian mill EZDK hiked its prices on January 31, 2008, other Egyptian mills announced price increases. The local rebar prices in Egypt are at EGP 4,150-4,200/mt ($749-758/mt) ex-works, including five percent VAT. Taking the five percent export tax into account, it is predicted that Egyptian mills will not be willing to sell their products below $740/mt FOB.
In the UAE market, the price level of imported rebar is at around AED 3,100-3,150/mt ($844-858/mt) delivered to site on a theoretical weight basis for 90- and 120-day deferred payment, excluding VAT. Contractor firms are avoiding the higher rebar prices; however, overall consumption is strong. With regard to imports, while a level of $800/mt CFR for Turkish rebar is mentioned, most of the offers are at $780/mt CFR on theoretical weight basis.
On the other hand, the Syrian, Lebanese and Israeli markets have been calm in the last two to three weeks. Buyers in Israel and Lebanon have not been keen on offers from either Turkey or Ukraine. However, this week some developments were seen in this market. It is heard that a booking was concluded from Turkey to Israel at a price slightly lower than $760/mt CFR. On the other hand, it is heard that demand in Syria has started to increase. ArcelorMittal Kriviy Rih is expected to increase its prices this month by $15-20/mt to $735-740/mt for shipments to the Middle East.