In the Saudi Arabian domestic flats market SABIC production HRC prices are at the level of SAR 2,250-2,300/mt ($600-613/mt) ex-works, the same producer's CRC prices are at SAR 2,650/mt ($707/mt) ex-works, while its HDG prices are at SAR 3,100/mt ($827/mt) ex-works. All prices are for December shipments.
In this market, inventories have yet to reach critical levels which would necessitate prompt purchases. On the other hand, market expectations of a recovery of demand have been delayed to October due to Ramadan.
Although Chinese origin HRC offers have not been for the desired specifications; i.e. for the sizes which are more in demand such as those less than 2 mm, the softening of Chinese offers has succeeded in casting a shadow over the Saudi Arabian flats market. Moreover, the rapid decreasing trend of Chinese offers has also led CIS origin flats offers given to this region to decline. The latest HRC offers given from China to Saudi Arabia for 3-12 mm material are standing in the range of $540-570/mt CFR.
However, on the other hand, Egyptian mill EZDK's HRC offers have not shown any decrease - on the contrary, it is mentioned that due to its well-established position in the Saudi Arabian flats market EZDK has no intention of decreasing its prices. 2-12 HRC offers given by the mill in question are at $635-650/mt CFR Saudi Arabia for January shipment.
US$1 = SAR 3.75008