In line with increased
rebar consumption in
Qatar, local steel producer
Qatar Steel is facing difficulties in meeting domestic
rebar demand. In previous weeks, there were some rumblings that
Qatar Steel would choose to import
rebar from
Turkey to satisfy the country's growing demand.
SteelOrbis has learned from market sources that a transaction for a single
rebar cargo of 50,000 mt has been concluded from
Turkey to
Qatar this week at $632/mt CFR on theoretical weight basis, for shipment in the first week of September. Although this price seems to be higher than mainstream market prices, costs for this transaction are higher given the higher freight rate to
Qatar from
Turkey as compared to most other Middle Eastern destinations and longer lay times in Qatari port. Besides the specific rib angle required for rebars demanded by
Qatar Steel is also affecting costs, though less than the other factors mentioned. Thus, the price in question is more or less in line with market prices.
Market players state that
Qatar Steel may conclude a new large volume
rebar transaction from
Turkey in the coming days to meet local demand. The
rebar transactions to the UAE and
Qatar concluded this week and the resistance of scrap prices to further softening could contribute to the return of upward momentum in the
rebar market, which has been on a soft trend for quite a while now.