Domestic rebar prices in Saudi Arabia, being currently high, have been providing some sales opportunities not only for local mills, but also for producers from neighbouring countries.
While domestic rebar offers in Saudi Arabia remain at $587-613/mt (SAR 2,200-2,300/mt) CPT depending on the producer, some other GCC region-based producers have found sales to the destination rather attractive. In particular, UAE’s Union Iron & Steel has reportedly sold 15,000 mt of rebar since earlier this month at around $550/mt (AED 2,025/mt) CPT. Oman’s Jindal Shadeed, according to sources, has been selling in 1,000-3,000 mt batches at $585-590/mt CPT, while some players estimate the total tonnage recently booked at around 20,000 mt, SteelOrbis understands. “The Saudi market is on fire these days as there is certain support from housing sector incentives. I assume that the support of large-scale projects’ consumption is yet to come,” a GCC-based source said.
It is worth mentioning that, although rebar imports have intensified in Saudi Arabia, the market is not wide open to distant suppliers. The key factor is the 10 percent import duty valid for non-GCC and non-Arab states. However, Egyptian mills may try selling rebar to the Jeddah area as well.
In the wire rod segment, Egypt’s Ezz Steel has kept its official offers at $540/mt CFR Jeddah for March deliveries. Negotiations continue while buyers expect the supplier to sell at a $10/mt discount. In the meantime, the latest offers from the UAE’s wire rod sellers were at $530/mt CPT Dammam with no deals reported. In the meantime, the largest Emirati wire rod producer is currently out of the market, having sold around 20,000 mt earlier at around $550/mt CPT, as SteelOrbis reported. Local Saudi producer Hadeed’s price for wire rod remains at $547/mt (SAR 2,050/mt) CPT Saudi Arabia.
$1 = SAR 3.75.
$1 = AED 3.673.