Although rebar stock levels in Lebanon have been low lately, import business activity in the country remains slow. Buyers are delaying their purchases as the market has been hit by the scarcity of US dollars following the political unrest in the country. According to market sources, the banks have trouble issuing letters of credit and so it is difficult for buyers to arrange payments even if the offered import prices are acceptable.
As a result, purchasing in Lebanon has been slow, with only around 3,000 mt of rebar being recently sold from Turkey at around $435/mt FOB for December shipment, which is equal to around $445-450/mt CFR, SteelOrbis has learned. Wire rod offers from Turkey are reported at $475-480/mt CFR for December-January shipments. In the meantime, ex-CIS rebar offers have been heard at around $415-420/mt FOB, with the freight to Lebanon estimated at around $25-30/mt.
Market sources believe it might take Lebanon a while to restore normal business conditions for the steel trade.