Hadeed, Saudi Arabia's largest steel producer and market leader, has released its domestic rebar and wire rod offer prices for September production, while stating that overall longs demand in the country seems to have indicated a slight recovery. According to market participants, with the end of the summer season and the start of construction of mega projects, demand and business activities will gradually pick up in the coming months.
“Rebar supply for the major projects has now begun, which will increase demand and boost company activity. Previously, demand was low, but, with the conclusion of the summer season, things are starting to pick up,” a Saudi trader told SteelOrbis.
As a result, for September 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, according to the announcement, the company has provided a discount to businesses that have met 50 percent of the contractual volume of wire rods, with a reduction of SAR 150/mt, resulting in a price of SAR 2,200/mt CPT. Meanwhile, for the other long products the discounts for businesses will be SAR 100/mt and SAR 200/mt, for meeting 50 percent and 100 percent of the contractual quantities, respectively.
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