Demand from Egypt for imported rebars has continued to be observed this week. Prices in North Africa and the Middle East had increased recently due to the purchase activity from Egypt (in particular), Libya and the UAE. In addition to the demand in question for finished products, European scrap prices have also risen due to the scrap purchasing activity from Turkey; meanwhile, European rebar prices have increased due to the rise in CIS origin billet export offers.
Meanwhile, Turkish producers have this week increased their rebar export offers for Egypt to the level of $500/mt FOB Turkey. However, actual rebar deals from Turkey to this country have been concluded at $485-490/mt FOB Turkey. With Turkish mills having gained relief through exports and filled their order books until mid-June, they have this week increased their prices a few times in their local market. Since the Turkish mills are keeping their prices strong in both local and export markets, there is now a greater chance for continuity in the rebar price increase trend in Turkey despite the sluggish demand. However, it is observed that traders in the local Turkish market are lowering their prices even though the mills are not.
No change in end-user demand has been seen this week in the local UAE rebar market as compared to recent weeks. With the UAE observed to be maintaining imports in order to avoid any difficulties in terms of rebar supplies for ongoing projects, it is heard that Turkish mills have concluded sales at $470/mt CFR UAE in recent times. On the other hand, no price uptrend has been observed this week in the local UAE rebar market.
Meanwhile, demand is still sluggish in the local Saudi Arabian rebar market. With no price movement seen in this local market compared to last week, the price of 16 mm rebar still stands at $530/mt ex-works. Additionally, it is heard that some traders and producers have been selling in this market at lower price levels.