Saudi Arabia’s longs market has continued to move upward into May, as local producer Hadeed has maintained its aggressive pricing policy following its multiple increases seen throughout April. The latest revision has further strengthened the overall bullish sentiment in the domestic market, with other major producers and retail prices also moving higher in response. Despite the already elevated levels, demand in the local market is still described as relatively healthy, while suppliers are said to be prioritizing domestic sales over exports, particularly as activity towards the UAE has slowed recently. At the same time, the sharp rise in local wire rod prices has started to draw more attention to import offers, with both Chinese and Egyptian material continuing to be discussed in the market.
According to market sources, rumors were heard last week regarding a 50,000 mt Chinese wire rod cargo sold to Jeddah at around $555/mt CFR, though the deal has still not been officially confirmed and continues to remain largely at rumor level in the market. At the same time, fresh Egyptian wire rod offers have also been reported this week at around $690-700/mt CFR Red Sea ports, while some market participants indicate that limited purchases from Egypt could emerge in the near term. Egyptian wire rod offers were previously heard at around $685-690/mt CFR in mid-April, indicating a slight upward movement in recent weeks.
Meanwhile, in the domestic market, following Hadeed’s latest increase to $773/mt (SAR 2,900/mt) CPT for rebar and $771/mt (SAR 2,890/mt) CPT for wire rod and coils for May deliveries, other domestic producers have also continued to revise their prices upward over the past week. Al Ittifaq Steel has increased its rebar offers to $768-773/mt (SAR 2,880-2,900/mt) CPT, bringing its levels largely in line with Hadeed, while Al Yamamah Steel Industries has revised its prices to $740/mt (SAR 2,780/mt) CPT. Although Al Yamamah’s prices remain below the prevailing market levels, sources indicate that the producer continues to maintain a relatively more competitive approach thanks to its fast delivery capability and customer-focused sales strategy.
In the retail segment, the impact of successive mill increases has become more visible across the market, with rebar trading prices now generally heard at $733-760/mt (SAR 2,750-2,850/mt) CPT, compared to $666-680/mt (SAR 2,500-2,550/mt) CPT reported previously.
All prices exclude 15 percent VAT.
$1 = SAR 3.75
