In the past week, in line with continued strength of raw material prices in international markets, prices of both semi-finished and finished steel (rebar included) have continued to increase.
Following Turkish rebar mills' scrap transactions at higher prices, rebar price hikes have speeded up this week. In the Middle Eastern rebar markets, demand for rebar has continued to remain at high levels, while anticipation of a rebar price increase prevails in these markets.
In the UAE domestic market, rebar prices are currently standing at AED 2,650/mt ($722/mt), while local traders seek to push rebar prices to the level of AED 2,700/mt ($735/mt). This week, the increase in Turkish rebar price offers, as well as the expectation of an increase in local producers' rebar prices, have continued to increase the likelihood of rising trend in the UAE rebar market. SteelOrbis has learned that Turkish mills' rebar offers to the UAE market stand at $720-730/mt CFR this week. Meanwhile, local traders are waiting for Turkish rebar prices to stabilize in order to conclude new transactions.
In the Saudi Arabian market, rebar prices have been maintaining a flat trend, while local traders expect Saudi Arabian producers to rise their rebar prices by the end of the current month. Thus, local traders have reduced their sales of local origin rebar, as they seek an opportunity to sell off their current rebar inventories at higher prices. SteelOrbis has learned from market sources that in the Saudi Arabian domestic market Turkish origin rebar is still being sold at SAR 2,850/mt ($760/mt).
In the Kuwaiti domestic market, rebar prices have not showed any changes so far, while local producers are expected to increase their rebar prices, in line with the continuing strength of raw material prices in the international markets.
The Yemeni rebar market has witnessed some panic this week, due to the rapid increase in Turkish rebar prices, while traders' rebar prices vary. SteelOrbis has learned that rebar prices in the Yemeni market are currently standing at $775-790/mt on theoretical weight basis, while Turkish mills' rebar offers to this market are at $725-735/mt CFR.
In January, rebar demand continues to remain at high levels in the Middle Eastern markets. Given the anticipation for a rebar price hike in February, the rebar markets in the Middle East are likely to maintain their strength in the coming period.