Rainfall hits Israeli rebar demand

Rebar prices in the Israeli domestic market this week have increased by five percent as compared to last week, after a sideways trend which had lasted for three consecutive weeks. Accordingly, Israeli mills' rebar offers to their local market are now standing at $820-830/mt ex-works, excluding 16 percent VAT, on actual weight basis. Rebar prices were at $780-790/mt last week.
 
Since there is a number of large scale construction projects planned within the scope of Israel's 2012 budget, it is thought that rebar demand in the country may strengthen in the coming period. In the meantime, ongoing subway construction in Tel Aviv is considered to be providing support for Israeli steel demand. However, due to the rainy weather in recent weeks, in general works on construction projects in Israel have been affected negatively. It is expected that rebar demand in the country may return to normal levels when the weather improves.
 
Turkish rebar offers to Israel are standing at $720-730/mt CFR for April shipments, though no transaction has been concluded so far at this price range. Nevertheless, the general market expectation suggests that Israeli buyers may conclude new bookings in the coming period in line with better demand, since their inventory levels are currently low.