Turkish rebar offers to Middle East soften with start of Ramadan as expected

Rebar demand in the UAE domestic market is low due to the start of Ramadan, while local rebar prices in the UAE this week stand at the range of AED 2,750-2,775/mt ($749-756/mt) ex-works on theoretical weight basis. Turkish mills' rebar offers for September shipments to Dubai stand at $725-730/mt CFR on theoretical weight basis, softening by $5/mt as compared to last week. While some transactions have been concluded at this price range, some buyers in the UAE are currently delaying their purchases, despite their needs, considering prices may further soften in the coming days.
 
In Saudi Arabia, rebar demand is low, due to the hot weather and Ramadan which has just got underway. 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. Although rebar supplies are not high in the country, slow demand causes new purchases to be delayed for the time being.
 
In the local Jordanian market, medium sized rebar prices are currently standing at JOD 695-705/mt ($980-994/mt) ex-works, including eight percent VAT, on actual weight basis, for 30-day deferred payment. This price range indicates a decrease of JOD 10/mt ($14/mt) as compared to last week in line with weak demand due to Ramadan and the hot weather. Market players expect demand to recover after Ramadan.
 
Rebar demand is extremely weak in Kuwait, due to the hot weather conditions. 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.
 
In Yemen's domestic steel market, rebar demand is low due to Ramadan, much the same as in other Middle Eastern countries. 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. In the meantime, Turkish steel mills' rebar offers to Yemen have decreased by $15/mt as compared to last week to $730-735/mt CFR on theoretical weight basis. However, because of recent political instability in the country, market players state that some of their costs have increased, and so their price idea is lower than this price range.
 
Rebar demand in Israel continues to be strong, while rebar cargoes which are to arrive this week in Israel are expected to ease the supply shortages which have been felt strongly lately. 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. In the meantime, rebar offers from Turkey to Israel are still at $760-770/mt CFR on actual weight basis. Waiting to see trends in Turkey's rebar offers during Ramadan, Israeli market players prefer to delay their purchases for the time being.
 
In line with rebar prices decreasing to TRY 1,280/mt ($755/mt) + VAT in Turkey's Iskenderun region, Turkish mills have also reduced their offers to the Iraqi market by $15-20/mt over the previous week to $750-755/mt ex-works, on actual weight basis. However, Iraqi buyers have not started their bookings yet.
 
Early this week, Egypt's largest rebar producer EZZ Steel increased its domestic rebar prices for August by EGP 150/mt ($25/mt) to the level of EGP 4,800/mt ($806/mt) ex-works. The price in question is on actual weight basis and includes eight percent sales tax. With the start of Ramadan, activity in the Egyptian market has showed some slowdown, while Egyptian buyers are currently not so willing to make bookings, although they continue their inquiries to Turkish mills.
 
While the Middle Eastern rebar markets are currently keeping a close eye on Turkish mills' rebar export offers, it is reported that sellers and buyers are still negotiating to find a common price level. In line with the anticipation of a demand recovery in September, market sources state that they expect transactions for September shipments to accelerate in the coming days.