Rebar bookings begin in Middle East as Turkish mills soften their offers

In the UAE domestic rebar market, local demand has indicated a certain decline in line with the significantly hotter weather conditions, while prices have increased slightly to AED 2,600-2,625/mt ($708-715/mt) ex-works on theoretical weight basis.
 
SteelOrbis has further learned that rebar offers of Turkish mills to Dubai are still at $710/mt CFR on theoretical weight basis. Local traders, anticipating that domestic steelmaker Emirates Steel Industries (ESI) will increase its sales prices in the coming days, have concluded some transactions from Turkey at the price range of $705-710/mt CFR, also due to their reduced inventory levels.
 
While the effects of the political turmoil still being felt in Yemen, rebar demand in the country is low. The rebar demand in the country is limited to end-users' daily needs, as construction projects have been suspended. In Yemen's domestic steel market, this week local traders' offers of imported medium sized rebars stand in the price range of $790-795/mt ex-warehouse, while Turkish steel mills' rebar offers to Yemen have showed some softening and are now standing at $700-710/mt CFR on theoretical weight basis. However, despite this softening, local buyers are abstaining from making new purchases, with local demand remaining low.
 
In the Kuwaiti domestic rebar market rebar prices have not showed any changes as compared to last week, while demand is significantly low in the country. In the meantime, Kuwaiti importers with medium levels of inventories have told SteelOrbis that they are monitoring the rapid changes in rebar prices in the international markets and are delaying their purchases for the time being.
 
 The Egyptian rebar market has once again increased its inquiries to Turkish mills. Egyptian buyers are rushing to conclude new bookings as soon as possible, as they consider that EZZ Steel will increase its rebar prices in June. However, the Egyptian construction sector is expected to witness slower activity by middle or late July, due to Ramadan, and also in September, due to the upcoming general elections in the country. As a result, construction projects are foreseen to be active in the next two months. Thus, local buyers find that Turkish producers' offers for mid-June shipment are on the late side in terms of time of arrival. SteelOrbis has learned that Turkish mills' rebar transactions to Egypt this week have been concluded at $715/mt CFR on actual weight basis.
 
In Jordan, rebar prices have reached JOD 620-630/mt ($873-887/mt) ex-works, including eight percent VAT, on actual weight basis, increasing as compared to last week, due to increased scrap prices and limited steel billet availability. Demand is currently moderate in the Jordanian rebar market, while traders are avoiding imports considering the political uncertainty in Syria and are monitoring the market trends instead.
 
In the Saudi Arabian domestic rebar market, supply shortages for certain sizes still prevail, while domestic rebar prices have remained stable again. Market players worry about a possible increase of these supply shortages and, considering this risk, traders are now seeking to increase their inventories. Accordingly, rebar demand is showing a gradual improvement in the country.