Saudi Arabian rebar demand maintains its strength

In the Saudi Arabian domestic rebar market, state-controlled rebar prices have not shown any changes this week. Accordingly, retail prices for rebar in the Saudi Arabian domestic market have remained at SAR 2,900/mt ($773/mt) and wholesale rebar prices are still at SAR 2,800/mt ($747/mt) - both ex-works and on theoretical weight basis.
 
On the back of strong rebar demand and consumption in Saudi Arabia, local producers are operating almost at full capacity. Besides, high finished steel demand has also pushed up semi-finished steel product demand. Turkish steel billet offers to Saudi Arabia are currently standing at $660-665/mt CFR, while ex-CIS steel billet offers are at $650-660/mt CFR.
 
On the other hand, Turkish rebar offers to Saudi Arabia are standing at $670/mt CFR on theoretical weight basis, while lower offers are also available in the market depending on the order volume. In the short term, rebar demand and consumption in Saudi Arabia is unlikely to decline, while the market activity in the country is predicted to weaken starting from late June and is expected to remain poor until September.