Rebar prices trend sideways in Middle Eastern markets, Turkish mills soften their offers

Rebar demand in the UAE domestic market has showed some slowdown in the past week, while local rebar prices in the country have continued to remain in the range of AED 2,725-2,750/mt ($742-749/mt) ex-works in general, on theoretical weight basis. However, in line with slower demand, offers as low as AED 2,700/mt ($735/mt) were also available in the market for advance payments. Turkish mills' rebar offers to Dubai were at $720-725/mt CFR on theoretical weight basis, softening by $5-10/mt as compared to the previous week. Some traders have concluded transactions at this price range, while some others have delayed their bookings, anticipating prices will soften further, as SteelOrbis has been informed.
 
In Saudi Arabia, although rebar demand remained strong last week in line with the good performance of the construction industry, as of July 15 the Saudi government is expected to forbid construction activities in the afternoon as a health and safety measure for workers in the hot weather conditions, and this may slow down rebar demand in the country. In the Saudi Arabian market, retail prices for rebar have remained at SAR 2,900/mt ($773/mt) and wholesale rebar prices are still at SAR 2,800/mt ($747/mt) - both ex-works and on a theoretical weight basis.
 
Last week, rebar demand in Kuwait was significantly low. However, medium size rebar offers have remained unchanged in the price range of KWD 220-225/mt ($803-821/mt) ex-warehouse, including taxes, on theoretical weight basis. In the meantime, Turkish mills' rebar offers to the Kuwaiti market have been standing at $740-745/mt CFR for July shipments. However, no transactions have been heard in the past week, since international traders have preferred to monitor the market trend, rather than conclude bookings.
 
In Yemen, rebar demand has continued to remain low due to political uncertainties in the country, while local traders' offers of imported medium sized rebars have been standing at the price level of $820/mt ex-warehouse, for cash payment, on theoretical weight basis, showing no change as compared to the previous week. In the meantime, Turkish steel mills' rebar offers to Yemen have declined by $10/mt as compared to the previous week, dropping to $720/mt CFR on theoretical weight basis. However, considering that they have sufficient inventories, Yemeni market operators have continued to adopt a wait-and-see stance amid weak demand.
 
Last week, rebar demand in Israel was very strong. In the meantime, due to weak availability of material, traders' rebar inventories have been very low, while Israeli mills' rebar offers to their local market have increased by $10-15/mt to $845-850/mt ex-works, excluding 15.5 percent VAT, on actual weight basis. Israeli traders have been waiting for cargoes from previously concluded transactions from Turkey at $780/mt CFR to arrive, and before starting their bookings again they were monitoring the market until rebar prices become steady.
 
Last week, Egypt's largest rebar producer EZZ Steel said that it will keep its domestic rebar prices for July at the previous level of EGP 4,650/mt ($779/mt) ex-works, on actual weight basis, inclusive of eight percent sales tax. Following this decision to keep prices stable, market players state that Turkish mills' rebar offers to Egypt are no longer advantageous in terms of either shipment time and price, and so they prefer to wait and watch developments in the market.