Over the past week the Turkish domestic rebar market registered a decline due to the weak levels of demand and the weak $/TRY exchange rate. Early in the week, the price level of 12 mm rebar was at TRY 790/mt, including 18 percent VAT, ex-works. However, the price level decreased to TRY 770-780/mt, including 18 percent VAT, towards mid-week. Trading companies have been avoiding bulk purchases, focusing instead on daily purchases.
Looking at the export market, offers are at a price level of $550-560/mt FOB on actual weight basis for November shipments to destinations other than the US and Persian Gulf markets. However, it would be difficult to say whether these levels have been accepted. The sales concluded to Southeast Asia two weeks ago do not seem supportive of the market in general. The weakness in the US and the European markets has been affecting Turkish exports in a negative way. Buyers have been trying to maintain pressure on producers with the help of the negative market atmosphere. The producers, for their part, have been trying to resist this pressure, citing strong scrap prices.
The price level of imported rebar in the UAE market is at around AED 2,300/mt ($626/mt) delivered to site on a theoretical weight basis for 3- and 5-month deferred payment, excluding VAT. The UAE domestic rebar market is not very impressive at the present time due to Ramadan. Traders have been trying not to lower their prices. However, contractors have been attempting to maintain pressure on the traders. The latest October shipment from Turkey was concluded at $590/mt CFR on theoretical basis or slightly below. Lower levels have been expected by traders for November shipment. For this reason, traders are not impatient for November shipments. Both UAE domestic producers, as well as Saudi Arabian and Qatari producers, have kept their prices unchanged for October. The latest offers from Saudi Arabia to the UAE are at a price level of AED 2,200/mt and slightly above.
In the Saudi Arabian domestic market, producers have been trying to keep their prices unchanged despite the lack of activity due to Ramadan. However, only time will tell how long the producers will be able to hold out against the pressure coming from the buyers. The retail price level of 8-32 mm rebar in the Saudi Arabian market is at SAR 2,400-2,650/mt ($641-708/mt) delivered to warehouse on a theoretical weight basis for 3- and 5-month deferred payment, including five percent VAT.
The Middle East market is weak due to Ramadan. However, some market players expect that there will be some activity in the post-Ramadan market due to the high raw material costs and prolonged deferral of demand. However, for this to happen, the strength of both raw material costs and the Far East market must continue.