In the UAE domestic rebar market, demand is currently low due to Ramadan and hot weather conditions, while local rebar prices in the country this week stand at the range of AED 2,750-2,800/mt ($749-762/mt) ex-works on theoretical weight basis. After having suspended their rebar bookings for a while, inventories of local traders had reached very low levels. In line with the decline in Turkish mills' offer prices for the UAE, buyers in Dubai have returned to the market for new bookings, anticipating demand will recover in September and/or October. Most traders in the UAE have eventually concluded rebar transactions from Turkey at $720-730/mt CFR. On the other hand, some traders are still delaying their rebar purchases, hoping prices will soften further, given the high volume of imports expected to arrive in early October.
There has not been much difference in the Saudi Arabian rebar market this week. Rebar demand in the country is still weak and buyers prefer to supply their needs locally. However, market insiders state that, when compared to Ramadan periods in previous years, the market situation is better this year. In the Saudi Arabian market, retail prices for rebar remain 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.
In the Jordanian market demand for rebar is low. In order to relieve the pressure of supply shortages for some rebar sizes, large volumes of material have entered the Jordanian market from Dubai, where Jordanian buyers enjoys duty free trade, resulting in a price decrease of JOD 35-40/mt as compared to last week. After this price decline, medium sized rebar prices in Jordan are now standing at JOD 660-670/mt ($930-944/mt) ex-works, including eight percent VAT, on actual weight basis, for 30-day deferred payment.
In this week's Kuwaiti domestic rebar market, medium size rebar offers have remained at the price range of KWD 218-220/mt ($799-806/mt) ex-warehouse, including taxes, on theoretical weight basis. Kuwaiti buyers are currently monitoring the market due to low demand and uncertain market conditions, rather than concluding bookings.
In Yemen's domestic steel market, this week local traders' offers of imported medium sized rebar still stand at the price level of $820-830/mt ex-warehouse, for cash payment, on theoretical weight basis, while rebar demand in the country is low due to Ramadan and hot weather conditions. In the meantime, Turkish steel mills' rebar offers to Yemen have decreased by $10/mt as compared to last week to $720-725/mt CFR on theoretical weight basis, while the price idea of Yemeni buyers is at $700/mt CFR. Due to economic uncertainties in the international markets, buyers are currently abstaining from concluding new bookings.
Unlike other Middle Eastern countries, rebar demand in Israel continues to be strong, thanks to ongoing construction projects. Israeli mills' rebar offers to their local market stand in the price range of $870-880/mt ex-works, excluding 15.5 percent VAT, on actual weight basis. This price range indicates no change as compared to last week. In the meantime, having low inventory levels, Israeli traders are waiting for arrival of cargoes of previously concluded Turkish rebar transactions at $760/mt CFR on actual weight basis. Israeli buyers prefer to wait for the time being, given the current unsteadiness in the global economy.
In the Egyptian market, demand for rebar is extremely weak due to Ramadan and hot weather conditions. Turkish mills' rebar offers to this market stand at $720-725/mt CFR on actual weight basis, for September shipments. In the meantime, SteelOrbis has learned from market sources that Egyptian buyers are seeking to obtain supplies of material at $700/mt CFR on actual weight basis for August shipments,; otherwise they prefer to sit on the sidelines instead.
Finally, rebar offers given to Iraq from Turkey's Iskenderun region have recently softened with the strengthening of the US dollar against the Turkish lira, declining to $730-735/mt ex-works. However, Iraqi buyers are currently quiet because of Ramadan and they are not in the market to conclude new bookings.