Saudi Arabia expects reduction in rebar prices

Saudi Arabia expects reduction in rebar prices

SteelOrbis had previously reported that, Saudi Arabian Cabinet reduced protective tariff on reinforcing bar from 20% to the level of 5% to control prices in domestic market. Saudi Arabia is a country, meeting 10-15% of its rebar need from imports. It imports rebar from Qatar, Kuwait, Egypt, Turkey and Ukraine. The volume of imported rebar is around 400'000 tons per annum. In Saudi Arabia, rising rebar prices increased costs of construction by 35%. Accordingly, with the reduction in the duty, it is expected that competition in domestic market will be created and this will give rise to reduction in the prices. Current rebar price in Saudi Arabia is $530/mt. The price of rebar in Egypt and Qatar are at the same level. It is stated that, the price of imported material from Turkey and Ukraine is below $500/mt.