Remaining under pressure from weak demand and uncertainty regarding the realization of government projects, Saudi Arabia’s largest steel producer and market leader, Hadeed, has reduced its long steel prices.
“The demand for rebars was very weak during November and is expected to remain weak in December as well,” a representative of a Saudi rebar mill stated.
As a result, Hadeed has revised rebar offers for December deliveries to $706/mt (SAR 2,650/mt) CPT Riyadh, a $40/mt (SAR 150/mt) decrease from the previous levels. Similarly, wire rods are offered at $733/mt (SAR 2,750/mt), down $40/mt (SAR 150/mt) from the previous month, with a three percent discount for clients provided the appropriate conditions are satisfied.
Currently, Hadeed is ready to sell rebar and wire rod to the customers within 80 percent of their quota at $685/mt (SAR 2,570.5/mt) CPT and at $711/mt (SAR 2,750) CPT, respectively. However, if the 80 percent level of the quota is exceeded, there is a another $40/mt (SAR 150/mt) discount. Sources believe that in such a way the company is trying to stimulate its sales while demand is slow.
As for the other local producers, Al Yamammah and Rajhi Steel have decided to offer rebar at the same price at $693/mt (SAR 2,600/mt) ex-works.
Meanwhile, the market is still waiting for import offers from the UAE. However, Emirates Steel Arkan (ESA), which is officially allowed to export to Saudi Arabia, has yet to start offering or take any action. Previously, it was expected trade would start for January production volumes.
"There are no proposals right now, but we will see soon," a source told SteelOrbis.
All prices exclude five percent VAT
$1 = SAR 3.75