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.