No significant development has been observed this week in the Middle Eastern rebar markets. While the Egyptian producers have reduced their rebar prices, no important change has been seen in Saudi Arabia and the UAE. In Turkey, price levels have fluctuated during the current week.
Prices in Saudi Arabia have been moving on a flat trend in recent months, and have also remained unchanged this week. End-user demand in this country has increased on occasion in the near past; however, demand has decreased this week and in the past week in this market mostly due to the fluctuation in international price levels. While some companies in Saudi Arabia are observed to have applied for export licenses, other companies have not been in any rush to do this, as they consider that the local market suffices them. Looking at neighboring countries, Saudi Arabian rebar prices may be said to need some revision in order to perform export activities.
Meanwhile, in the UAE, demand is at low levels for both local production and import rebar due to the lack of new projects. Market players are wondering when the UAE importers will buy again after they receive previously concluded deals for June delivery and increase their stocks thanks to these deals. While it is expected that construction activity will slow down in the Middle East at Ramadan (starts in the third week of August), new deals and shipments may continue to be seen up to the start of Ramadan. In the UAE domestic rebar market, for the time being Emirates Steel rebar prices are at $500/mt ex-works, whereas Rak Steel rebar prices are at $485-490/mt ex-works.
Prices have fluctuated in the local Turkish market this week also. 12 mm rebar price levels from traders had declined to TRY 760/mt ex-works including VAT ($418/mt excluding VAT) early this week; however, coming up to the end of the week the price level reached TRY 800/mt ex-works including VAT ($440/mt excluding VAT). While the price announced by a local Turkish producer on June 3 was not met with acceptance on the day in question, 35,000 mt of rebar were heard to have been sold by the producer by Friday, June 5. The price levels in Turkey have been changing under the influence of raw material prices rather than of end-user demand which has also been sluggish this week.