Although Saudi Arabian mill SABIC started to receive orders for September three weeks ago, it is said that the producer is close to filling its order book for September. As may be recalled, eight weeks ago SABIC increased its HRC base prices on ex-works basis from SAR 1,650/mt ($440/mt) to SAR 1,750/mt ($467/mt). Three weeks ago the mill in question filled its order book for August and then again raised its HRC base prices to the range of SAR 1,800-1,850/mt ($480-493/mt) ex-works. For new orders the mill is currently offering at SAR 200/mt ($53/mt) above the offers which have been given for September production material. It is expected that the mill will continue this pricing policy for October. Should SABIC find buyers for the high offers in question, the market will then expect these price increases to become more permanent. However, this scenario will play out only if the international markets do not get any worse. Otherwise, competitive import offers will cause the local Saudi Arabian market to decrease.
Meanwhile, it is possible to say that ex-works prices in the local flats markets all over the world are generally on the way up. The contracted production capacities of mills and the near conclusion of the destocking process of traders and distributors have been causing ex-works prices to increase globally. However, after it becomes clearer whether new prices will be accepted by end-users, it will also become apparent whether this global increase trend will be temporary or more permanent.