Domestic rebar prices in Saudi Arabia have decreased, following the announcement of the market leader, though previously trade and demand were relatively positive across the GCC. Some market sources explain this move by the high level of stocks at some producers and the expected slowdown during the Ramadan period.
According to the announcement, Hadeed has revised rebar offers for April to $627/mt (SAR 2,350/mt) CPT, a $40/mt (SAR 150/mt) decrease from the previous levels. In addition, if customers meet the necessary requirements, there will be another $26/mt (SAR 100/mt) discount.
According to market players, demand in Saudi Arabia has been constant but not sufficient to support price increases. In addition, construction activity in the region usually slows down during the month of Ramadan, and so the producer is most probably aiming to speed up sales, especially given the accumulation of stocks.
Moreover, the same reason has been behind Saudi Arabia’s export activity. According to sources, a Saudi mill sold about 50,000 mt of rebar to Asia last week at $613/mt FOB, while a deal for another significant lot was transacted by the other Saudi producer in the first half of March at $575/mt FOB.
All prices exclude 15 percent VAT.
$1 = SAR 3.75