Saudi Arabia’s Hadeed has announced its domestic rebar and wire rod prices for September production. The producer increased the offers by $26-27/mt (SAR 100/mt), most probably counting on some better business due to seasonal factors.
Hadeed’s local rebar is now available at $613/mt (SAR 2,300/mt) CPT for September production. Other mills in Saudi Arabia are expected to set their offers at $587-600/mt (SAR 2,200-2,250/mt) CPT, SteelOrbis understands. In the wire rod segment Hadeed is in the market with $547/mt (SAR 2,050/mt) CPT. It is worth mentioning that the latest import deal from Egypt was closed at $517/mt CFR Jeddah, while the offers were $3/mt higher.
Some local market players expect better business in September after it has been affected by the heat in July and August. Some of the producers, however, are not that optimistic, underlining the impact of the recent VAT increase from 5 to 15 percent. “I think it is slowing down the private projects development while the ongoing ones have already secured their requirements in the previous two months,” a mill’s representative said. Another manufacturer estimates that the demand has contracted by up to 30 percent after the higher VAT introduction.
All prices exclude 15 percent VAT.
$1 = SAR 3.75