Posted on 20 Nov 2024
Egyptian-origin wire rod offers in the Riyadh wholesale market at SAR 2,380/tonne ($635) are weighing on local wire rod prices. Solb's wire rod price to traders in Riyadh is also at SAR 2,380/t, while the benchmark mill is at SAR 2,440/t, both delivered, Kallanish notes.
Meanwhile, the benchmark mill's rebar is at SAR 2,350-2,380/t in the retail market and in wholesale – between traders – at SAR 2,330/t, both delivered against cash payment. Certain sizes of rebar are in short supply in the market. As the end of the year approaches and rebar distributors are looking to take pre-agreed volumes from suppliers, Hadeed and Al Ittefaq are seeing an increase in enquiries from distributors.
Demand for rebar in the Saudi domestic market is robust, driven by Giga projects, particularly in Riyadh, so market participants are expecting a SAR 50/t increase for December rolling. However, due to the discounted Egyptian wire rod offers, rod tags are expected to remain the same.
Tier-three rebar producers have very low rebar inventories and are trying to catch up with orders. In Riyadh and Jeddah, they are offering rebar at SAR 2,170-2,200/t ex-works for cash, while in Dammam they are offering at SAR 2,210-2,240/t.
One trader concluded a rebar deal with a contractor at SAR 2,250/t delivered for material from Al Ittefaq.
Source:Kallanish
