Posted on 09 Jan 2024
Wholesale rebar prices from the Saudi Arabian benchmark mill are rising following the removal of the project discount in January. All traders now book at a single price of SAR 2,325/tonne ($620) delivered on credit secured by a bank guarantee or LC.
This week, traders are offering the benchmark mill's rebar in the wholesale market (between traders) against cash at SAR 2,280-2,300/t ex-works or delivered within the same city, compared with last week's SAR 2,250-2,280/t, notes Kallanish.
For January deliveries, meanwhile, Al Ittefaq is quoting rebar at SAR 2,275/t, while Al Rajhi is unchanged for two consecutive months at an average of SAR 2,257/t, both delivered and on credit. Al Yamamah is selling at SAR 2,200/t delivered on cash, and third-tier mills are quoting ex-mill at SAR 2,140/t in Jeddah, SAR 2,150/t in Riyadh and SAR 2,180-2,200/t in Dammam.
The benchmark mill is reported to have renewed MoU contracts with all known traders, including some traders who were out of the MoU scheme in 2023.
"Traders still have high rebar inventories and demand is not improving, while costs have increased due to the 53% diesel price hike announced last week," opines one trader.
Source:Kallanish
