Saudi Arabia’s largest steel manufacturer and market leader Hadeed has decided to keep its long steel pricing stable for June production. Overall longs demand in the country is said to be generally slow due to limited end-user activity. In addition, Hadeed has been applying a flexible system of discounts, which helps it to maintain a certain volume of sales and at the same time puts pressure on its competitors.
Accordingly, Hadeed's domestic market offers for rebar and wire rod are still at SAR 2,350/mt ($626/m) CPT. In addition, orders from construction projects receive additional SAR 150/mt ($40/mt) discounts to SAR 2,200/mt ($587/mt) ex-works, which is also the level of the offers from other rebar producers in Saudi Arabia.
In addition, Hadeed has been granting an additional three percent discount to companies that purchase a certain percentage of their monthly quota.
“With discounts and the quota, the Sabic workable price comes to SAR 2,100/mt or $560/mt CPT,” another Saudi Arabian producer said.
Meanwhile, SteelOrbis has learned that the current retail rebar price in Saudi Arabia stands at around SAR 2,450/mt ($653/mt) CPT Riyadh on average.
$1 = SAR 3.75