MLPPI - Middle East Long Product Price Index
MFPPI - Middle East Flat Product Price Index
MEASPI - Middle East Steel Price Index

PI - Product Index

PI - Product Index
(www.steelprices-middleeast.com)

Flat Products

Prices for flats remained entangled in downward spiral in Middle East. Traders say that buyers stay indifferent to purchases of import flat steel nonetheless some residual buying for immediate buying is taking place

In general, stockiest, service centers and pipe makers still have some material in stock and are so far delaying mass purchases. The market dwells in ambiguity. On one hand the traders opine that buying will commence within a month as buying has been below par for the past 2 months, while others insist that it will happen just after Ramadan.

There was a token spike in buying activity a fortnight ago as the market anticipated bottoming out but this proved to be a misnomer, with the import offers relentlessly plummeting thereafter.

On the other hand since inventories are depleting very slowly as they are aligned with import levels of newly produced material.

Offers for HRC from Ilyich (Ukraine) with immediate shipment are traditionally the lowest at USD 535-545 per tonne CNF. Noteworthy, offers of HRC from Ukraines Zaporizhstal and Russias MMK are almost equal, which is unusual.

The last booked levels from Zaporizhstal HRC at USD 600 per tonne CNF Dubai. stockiest are offering HRC at AED 2500 (USD 680 per tonne) delivered at buyers yard with 180 days payment, with current offers of CIS material in the range of USD 535 per tonne to USD 545 per tonne CNF, Dubai it is finding difficult to move .

Long products

Long product prices saw a massive debacle by 7% within a week. The impact was severe in WRC and rebar. With billet and rebar prices entangled in a never ending downward spiral, buyers opted to remain huddled waiting for the worst to pass over. As the import offers melted the domestic prices followed suit lest buyers opt for new imported material at cheaper rates over old stocks.

UAE

With import offers of billets touching new low of USD 435 per tonne to USD 445 per tonne there is hardly anything left to be said . The market mincemeat is further accentuated by the panic in already enfeebled domestic sentiments. As a result the domestic levels fell by 9% and 10% respectively of rebars and WRC during the week touching new lows of AED 2400 per tonne and AED 2450 per tonne respectively delivered at buyers yard with 180 days credit. Rebar offers from Turkey is prevailing at USD 540 per tonne to USD 550 per tonne CNF Dubai whereas WRC comes at USD 550 per tonne to USD 570 per tonne CNF Dubai. The happening in the last week leaves no speck of doubt about the prospects.

IRAN

Iranian market remained slack despite being peak of construction season as stocks of imported material swelled at North and South Iranian ports. Currently, rebar prices of Iranian mills vary in the range of IRR 6950 per tonne to IRR 7100 per tonne EXW. Prices for import rebar from Turkey, UAE, Europe, and the CIS are USD 540 per tonne to USD 560 per tonne CNF, which is about USD 650 per tonne to USD 675 per tonne with the total import duty (20%). Deals at such prices can evidently interest mainly those Iran buyers who need a cash credit. It is customary the Iranian market players receive a letter of credit for a steel product transaction and use the cash for operations in the financial market. Such schemes allow them to get a profit even if the deals are made at relatively unattractive prices.

OMAN

The market for long products in GCC countries is facing slack demand on construction activity slowdown caused by summer heat, as well as global downward trend.

It should be noted that the prices are dragged down in Oman not only by slack demand. Buying activity has stood still after the cyclone hit the coast of the country. Traders think demand will recover to at least two-week-ago levels in the second half of June.

In Oman, mills prices for rebar have dropped by USD 45 per tonne to USD 70 per tonne (OMR 18 per tonne to OMR 26 per tonne) compared with a fortnight ago. In the stockiest market, prices for domestically produced rebar vary in the range of USD 650 per tonne to USD 675 per tonne (OMR 252 per tonne to OMR 260 per tonne) languishing with a negative variance of USD 40 per tonne to USD 60 per tonne from current import offers .

SAUDI ARABIA

Unlike other GCC members, Saudi Arabia is proving to be an oasis enjoying exceptionally high construction activity, which is supported by the governmental infrastructure development program. Nonetheless producers cannot ignore cheap import material present in the market. Stockiest have been very careful while purchasing lately.

Recently Saudi Arabia, Al-Rajhi Steel and Al-Tuwairqi Group have announced a cut to USD 735 per tonne to USD 740 per tonne ex-wks theoretical weight. Medium-diameter rebar from Hadeed is offered at USD 730 per tonne to USD 735 per tonne EXW.

Current offers of Turkish rebar are coming to the region at USD 555 per tonne to USD 565 per tonne CNF, against USD 580 per tonne to USD 590 per tonne CNF a week back.

In this exceptionally if not surprising agonizing phase the only breathing space can be the arrival of Ramadan or possible mirage of bottoming out creating momentary flutter.

www.steelprices-middleesat.com is a comprehensive service for tracking real time domestic steel prices and trends in Middle East.

The scope of service includes
1. Domestic pricing information in UAE, Saudi Arab, Qatar, Kuwait and Bahrain
2. Export levels from Turkey, Rotterdam, China, India and Black Sea

The service is specifically designed to assist steel makers, traders, users and others connected with the industry to keep track of real time prices prevailing in the market and thus comprehensively evaluate steel pricing trends in the trend setting region

Methodology and access
1. Benchmark products in each category with fixed commonly used sizes and grades
2. Average transaction levels which have settled well, based on continuous interactions with domestic mills, service centers, stockiest, traders and buyers
4. On fixed market oriented payment terms
5. Daily updates
6. Data available since July 2008
5. Access through web site

Products covered
1. Long Products
2. Flat Products
3. FOB levels for export FOB Black Sea, China, Turkey and India

1. Long Products

2. Flat Products

3. FOB levels for export FOB Black Sea, China, Turkey and India
Weekly basis

A. Input & semis

B. Long Products

C. Flat products

Other features

The prices are displayed on weekly and monthly basis. They also have search facilities to access old data from the archives. Graphical representation of trends and comparison of price movement 2 or more products is also available.

In addition, you can monitor currency exchange rates, metal prices, BDI for the day as well as access their archives for past data.

Other features include converters for weight, length etc, glossary and advanced search functions. The benchmark product price information is supplemented by global pricing news.

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In USD