Middle East, although a late entrant in the arena of ...
Middle East, although a late entrant in the arena of market tailspin, has plummeted by 30% in Rebar over last 1 month. It has shown feeble revival in the last week but where the buck is going to stop can only be a vague speculation.
Turkish material is being offered at USD 570 per tonne to USD 600 per tonne on C&F terms, but there are very few takers.
There is no news of any major deals having been concluded owing to the following reasons:
1. Virtually no credit lines being offered by banks due heavy losses on the old bookings and cargoes.
2. Stockiest are having inventory of about 2 million tonne which is about 4 months stock (@ 0.5 million tonne per month average consumption under normal demand levels) but is likely to stretch up to 6 months due to lack of any perceptible vibrancy in demand.
In the above scenario buyers prefer to buy at USD 500 per tonne of the shelf rather than book at higher price levels.
The only silver lining in the cloud is anticipated spurt in demand from Iran for re export which at the best can be anybody’s guess.
Internationally prices definitely have reached nadir and it is expected to creep up, but the market dynamics at the transaction levels is still uncertain and a crystallization of the trends is expected to take place in a couple of week time.