Saudi Arabia has reportedly decided to remove its five percent import duty on rebar, stating that there is a shortage of the product in the country.
"There are no import duties on rebar now because of a shortage in Saudi Arabia and we want to encourage traders to ship the steel here," Arab press reports quoted a Ministry of Trade and Industry spokesman as saying on Monday.
According to these statements, rebar shortage in the country recently led to unease and unjustified price increases in the market. The expectation from the removal of the duty is for rebar prices to go back to normal levels with the supply increasing.
As SteelOrbis previously reported, by early January this year, Saudi Arabia had reimposed five percent customs duties on steel and cement imports that had been placed on hold for the last two years. The decision to reimpose duties on all rebar and cement imports was circulated to all Saudi border ports as of the beginning of 2010.
The removal of the import duty is yet to be officially confirmed by the Saudi Arabian authorities.
According to the latest SteelOrbis data, in the local Saudi Arabian market wholesale rebar prices have very recently risen to SAR 3,000-3,050/mt ($800-813/mt).
US$1 = SAR 3.75