The Saudi Arabian longs market has shown mixed trends in June, with higher raw material costs providing support for the market, while weaker demand has continued to pressure trading prices in the retail segment. Although Hadeed kept its finished steel prices unchanged at the beginning of the month and other local producers followed a similar pricing strategy, buying activity has remained below expectations both before and after the Eid holiday period. Consequently, traders have reduced their rebar offers compared to last month in an effort to stimulate sales. Meanwhile, Hadeed raised its scrap and billet purchase prices earlier this week, a move which is expected to increase cost pressure across the market, though its impact has yet to be reflected in finished steel prices.
This month, Hadeed has kept its rebar prices unchanged at $781/mt (SAR 2,930/mt) CPT, while its wire rod and coil prices have remained at $778/mt (SAR 2,920/mt) CPT. Other local producers have also maintained their prices unchanged compared to the previous month, with Al Ittifaq Steel's rebar offers still heard at around $768-773/mt (SAR 2,880-2,900/mt) CPT, while Al Yamamah Steel Industries is reported to be offering rebar at approximately $741/mt (SAR 2,780/mt) CPT.
Despite the stable pricing from mills, activity in the retail market has remained relatively limited. According to market sources, traders are currently offering rebar at around $685-707/mt (SAR 2,570-2,650/mt) CPT, compared to $733-760/mt (SAR 2,750-2,850/mt) CPT reported last month.
On the raw material side, Hadeed increased its scrap purchase price to SAR 1,860/mt CPT earlier this week, compared to SAR 1,600-1,700/mt CPT heard previously. Billet prices in the Saudi market have also risen, to around SAR 2,300/mt CPT ($613/mt), up from approximately SAR 2,100/mt CPT ($560/mt) reported last month. Despite the weaker sentiment in the retail segment, the higher raw material costs suggest that production cost pressures have continued to build in recent weeks.
Meanwhile, in the import market, no fresh wire rod transactions have been reported in recent weeks. However, Egyptian offers are still heard at around $690-700/mt CFR Jeddah, according to market sources.
All prices exclude 15 percent VAT.
$1 = SAR 3.75
