Hadeed, Saudi Arabia’s largest steel producer and market leader, has released its domestic rebar and wire rod offer prices for July production while stating that overall longs demand in the country has reportedly continued to be slow due to minimal end-user activity. However, market participants believe that the impending Eid holiday has lowered business activities, which will gradually pick up following the holiday.
“Demand is not much due to the approaching Eid holiday we are expecting after Eid there will be some improvements,” a Saudi trader said to SteelOrbis.
As a result, for July production Hadeed has maintained rebar and wire rod prices unchanged at SAR 2,350/mt ($626/m) CPT compared to the previous round of offers. However, the producer has continued to offer further discounts for the orders coming from construction projects at SAR 150/mt ($40/mt) to SAR 2,200/mt ($587/mt) ex-works. Furthermore, Hadeed has been offering a three percent discount to companies that purchase a particular amount of their monthly quota.
Meanwhile, other producers have not announced their prices but are expected to follow a similar price trend in the coming days.
$1 = SAR 3.75