Posted on 12 Mar 2024
Bahrain's rebar traders are asking suppliers to extend payment time from 60 to 90 or 120 days. Last week, imported rebar prices surfaced, and buyers booked almost 5,000 tonnes of rebar combined from Qatari and Saudi suppliers, Kallanish notes.
Due to long payment terms from contractors, rebar distributors are asking for payment extensions and open accounts, while rebar suppliers are ready to extend payment extensions for 30-60 days but against bank guarantees or LCs to secure payment.
In separate deals, ex-Qatar rebar was booked at $610/t (BHD 229/t) delivered against LC 60-90 days, while ex-Saudi material was booked between $587-595/t (BHD 221-224/t) on LC-60 days, both for prompt shipment.
The bulk of retail rebar sales hover around BHD 248-250/t ($660-665/t) delivered on 60-90 days credit.
"Financing costs increased due to high-interest rates. Rebar distributors can hardly receive payments from contractors within 90 days. It's not only the price of the rebar but also the time of payment that becomes an issue, so rebar distributors negotiate with suppliers for a minimum of 90 days payment and open an account to avoid LC charges," comments an industry participant.
Source:Kallanish
