Posted on 27 Jun 2024
Hadeed, Saudi Arabia's largest steel producer, has slightly increased its domestic prices for July-delivery finished long products amid lacking demand and increased domestic scrap tags.
This is the first price announcement by the new management, which took office in early June after new owner Public Investment Fund (PIF)’s acquisition of Hadeed was approved by regulatory authorities in May, Kallanish notes.
Prices for 12-40mm diameter rebar, 8-14mm rebar in coils, and 6.5-12mm wire rod have been raised each by SAR 35/tonne ($9.3) compared to prices in June.
The new values are at SAR 2,410/t ($642.6) for 12-40mm diameter straight rebar and SAR 2,485/t ($662.6) each for 8-14mm rebar in coils and 6.5-12mm wire rod. These prices are applicable for nationwide delivery, excluding 15% VAT, and payment is accepted via LC for 90 days or bank guarantee.
"The marginal increase is attributed to increased costs, particularly domestic scrap, I guess. The market was divided into two. One part was expecting a rollover but didn't consider the increased scrap and logistics costs, while the other part anticipated a SAR 100/t increase without considering the subdued demand factor," comments a senior trading company official.
Source:Kallanish
