Posted on 25 Jun 2024
Saudi Arabian tier-two and tier-three mills are preparing to increase their rebar prices by SAR 25-40/tonne ($7-11) compared to before the Eid holiday due to surging scrap and logistics costs. Moreover, rebar traders are increasing purchases in anticipation of benchmark mill Hadeed hiking prices for July rolling, Kallanish notes.
Before the Eid holiday, major distributors booked significant tonnages of rebar for restocking from fully-integrated Dammam-based steelmaker Al Ittefaq at around SAR 2,260/t delivered, on credit.
The benchmark mill's rebar, delivered against cash payment, is available at around SAR 2,320/t between traders and SAR 2,330-2,360/t in retail.
High trading activity is encouraging semi-integrated induction furnace mills in the capital, Riyadh, to quote rebar at SAR 2,180-2,200/t ex-works against cash.
Most industry participants expect Hadeed mill to announce its July rebar and wire rod quotes this week. Hadeed issued its rebar list price for June deliveries on 24 May at SAR 2,375/t delivered on LC-90 days, increasing by SAR 25/t on May. Increased transportation costs drove the marginal increase, while demand was lacking.
Since the last week of May, local scrap prices have risen by SAR 25-30/t against mid-May quotes.
Source:Kallanish
