Turkish producers announced price levels of $720/mt ex-works on US$ basis this week. Consumption levels in the Turkish market are not strong due to the winter-time conditions. Nevertheless, traders' demand levels cannot be said to be low. For this reason, it is possible to see traders' prices at $10-15/mt below the mills' levels. On the other hand, producers have been mentioning to traders that they will increase their prices for the local market due to the strong international rebar market situation and the high raw material prices.
Offers in the Turkish rebar export market have been at the price level of $720-730/mt FOB on actual weight basis for March shipments. It has even been heard that some producers have been giving offers at prices above the level in question. Although exports to the European rebar market, which has been stable for a long time, have still not become active, it is heard that some sales were concluded early this week to western Europe at the price level of $715/mt FOB. It has also been heard that the latest sales levels to the UAE were at $760/mt CFR on theoretical weight basis.
The price level of imported rebar in the UAE market is at around AED 3,000/mt ($817/mt) delivered to site on a theoretical weight basis for 3- and 4-month deferred payment, excluding VAT. It has been heard that traders have been pushing the price level of AED 3,100/mt ($844/mt). With regard to imports from Turkey to the UAE, following sales concluded at the level of $750-760/mt CFR on a theoretical weight basis, the new offers are at $770-780/mt CFR. On the other hand, some rumors have been heard of Chinese offers in the market at $760/mt CFR, even with the new export duty. However, the idea of the entry of ex-China rebars to the UAE domestic market seems unrealistic for now.
Ukrainian rebar producer Arcelor Mittal Kriviy Rih, as previously expected, has increased its prices for March shipments with the conclusion of the Orthodox Christmas holiday. Ukrainian offers to the Middle East market are currently at $675-680/mt FOB. The rising Ukrainian rebar prices could give Italian producers some relief in the North African market.
The price level of rebar in the local Lebanese market has been at $900/mt ex-works, on actual weight basis, including 16 percent VAT in the past week. The price in question has risen compared to the pre-New Year period. The tightening of the billet supply may cause the domestic long products prices to go up further. On the other hand, the ex-Ukraine to Lebanon prices have been at $725-730/mt CFR in the past week.
Prices in the local Egyptian rebar market are rising rapidly. The price level for rebar in the local Egyptian market has been at $720/mt ex-works, excluding taxes. Due to the high local market prices and the five percent export duty, the Egyptian producers are not competitive in the export market. In line with the current local prices, it seems that export offers that may be given from Egypt will be above $740/mt FOB.
The price level of 8-12 mm rebar in Saudi Arabia's domestic market has been at SAR 2,600-2,900/mt ($694-774/mt) delivered to warehouse on theoretical weight basis, including five percent VAT. The major part of producers' new price increases, which were announced last week, were accepted by the market this week. Rising raw material and billet prices have been providing supporting for the Saudi Arabian rebar market.
It seems that the rising price trend has not abated in the Middle East's domestic markets. The domestic markets in the region in question have been rising due to the tightening of billet supplies. On the other hand, producers in the Middle East have been taking heart from the fact that exporting countries, such as Egypt, Turkey and Ukraine, have been increasing their export prices.