In the Saudi Arabian domestic flats market, local producer Sabic's HRC offers are at the level of SAR 2,000/mt ($534/mt) ex-works, the same producer's CRC offers are at SAR 2,500/mt ($667/mt) ex-works, while its HDG offers are standing at SAR 2,800/mt ($747/mt) ex-works - all for April production materials.
Although no change has been observed in terms of local production flats prices, it is heard that discounts of $40-50/mt may be seen for actual deals.
On the other hand, Russian mill MMK's HRC offers to Saudi Arabia are in the range of $400-420/mt CFR Dammam, whereas South Korean steemaker Posco's offers to the same destination for HRC are at $450/mt CFR Dammam; both offers are for May shipment.
In the Saudi Arabian domestic market demand has been trending slack. The sales volume on the import side is at very low levels at present: this may be explained by the presence of sufficient materials in stock - booked at high price levels in previous times - to satisfy the current weak demand in the market, and also by shorter lead times as well as by end-users' expectations of further price declines.
Traders have been abstaining from making predictions about the possible flats market performance in April and May; however, they indicate that they hardly hold out any hopes for 2009, since the summer holiday will combine with Ramadan at the end of August, consequently exerting a slowing effect on the market.
US$1 = SAR 3.74494