Key Export Transaction
Saudi Arabia’s west coast mill recently finalized a 5,000-tonne rebar export deal at $515/tonne fob Jazan port, equivalent to $540-545/tonne cfr Lebanon. Kallanish confirms that the shipment is expected to arrive in Lebanon during the first week of January 2024.
Price Context in Saudi Arabia
Last week, the lowest billet price in Saudi Arabia was SAR 2,030/tonne ($541) ex-works for 130mm 3sp material produced by induction furnace mills. Meanwhile, rebar ex-works prices in Riyadh and the west coast ranged from SAR 2,180 to 2,200/tonne ($581-587), based on cash payment terms.
Competitive Pricing and Market Dynamics
According to a senior mill executive, the rebar price of $540-545/tonne cfr Lebanon is unmatched by competitors, including mills in Egypt, Qatar, Algeria, Russia, or Turkey. However, the official highlighted that this deal is viewed as a one-off transaction, unlikely to set a trend for future prices.
Rebar Offers in the Region
- Lebanon: Current rebar offers are $560-565/tonne cfr.
- Egypt: Rebar is priced at $580-585/tonne cfr, equivalent to $560-565/tonne fob Egypt.
- Qatar: Offers for January shipments stand at $520/tonne fob or $570-575/tonne cfr.
Reconstruction and Steel Demand
The ongoing reconstruction efforts in Lebanon and Syria are expected to drive substantial demand for building materials, including steel products. According to a Lebanese trading source, the market is already witnessing intense competition among rebar suppliers, as the region gears up for large-scale rebuilding projects.
This deal exemplifies the dynamic nature of the Middle East rebar market, influenced by competitive pricing strategies and rising demand from reconstruction activities.
