Rebar buyers in the Middle East still keep their purchases on hold

The political uncertainties in some of the Middle Eastern countries continue to keep rebar buyers in this region from returning to the market.
 
The price increase effected by the domestic producers in the UAE prevented prices in the market from falling too low. Transactions are mostly being concluded by traders in the local market in the range of AED 2,600-2,650/mt (approx. $708-721/mt).
 
The February delivery shipments sold by Turkish producers are to arrive in the Dubai market soon; therefore, this market is not expected to experience problems in terms of availability. The latest deals to Dubai were concluded at $675-680/mt CFR on theoretical basis, and this week buyers are seeking to obtain lower prices from Turkish producers.
 
 In Saudi Arabia, the price increase requested by local producers has not found acceptance from the government. Therefore, the prices of the producers have remained at the previous levels. This week Turkish producers are offering rebar to Saudi Arabia at $670-675/mt CFR on theoretical basis. It is heard that Saudi Arabian buyers are negotiating numbers below this range.
 
The chaotic situation in Egypt has caused uncertainty to spread to the market in Jordan as well. Under such market conditions, both demand and production in this market has slowed down. Domestic price levels have regressed to JOD 590-600/mt ($832-846/mt) and no recovery is expected to be seen as long as the current uncertain situation remains unresolved.
 
Domestic prices in Yemen softened as Turkish rebar offers to this destination declined somewhat. Yemeni buyers prefer delay their new bookings. Offers made to this market from Turkey are in the range of $675-680/mt CFR basis. Buyers are waiting for Turkish producers' scrap purchase prices to settle before taking any step.