SteelOrbis has learned from market sources that in the Saudi Arabian domestic market retail prices of rebar are at SAR 2,550-2,700/mt ($680-720/mt) ex-warehouse, while wholesale prices are standing at SAR 2,450-2,600/mt ($653-693/mt) ex-works. It is observed that offers have softened by SAR 250-300/mt ($67-80/mt) in the last two weeks, while deals below the above prices ranges can be negotiated for larger orders as demand in the Saudi domestic market is slack. Market sources say that the expulsion of illegal workers from the country has caused a stagnation in the market this year and that the overall transaction volume in the Saudi Arabian rebar market has shrunk. In this context, Saudi buyers have had to resort to imports to secure their rebar needs and local producers have been obliged to decrease their rebar offers.
Meanwhile, ex-Turkey rebar offers to Saudi Arabia are at $595-600/mt FOB, but these offers are SAR 300/mt ($80/mt) higher than domestic prices and therefore offers from Turkey are garnering little interest from Saudi buyers.
On the back of high raw material prices, Turkish producers are not willing to soften their rebar offers, while, due to the significant price decreases in the local Saudi market, Turkish buyers are struggling to conclude new deals to Saudi Arabia.
$1 = SAR 3.75