According to market sources, wire rod producers in Saudi Arabia have revised their prices downward after the New Year holiday, as had been expected. Accordingly, one major Saudi Arabian wire rod producer has cut its price by $15/mt compared to the previous week to $510/mt delivered, while Chinese offers to Saudi Arabia have decreased by $10/mt week on week to $420-425/mt CFR.
Market sources state that small wire rod producers in Saudi Arabia have had to halt their production as their offers are now at higher levels compared to the revised list prices of the major producer in question, which makes it harder for them to compete in the local market. It is also heard that wire rod purchasing activities at the new price levels have started to improve gradually in the local Saudi Arabian market.