Posted on 10 Dec 2024
The Saudi Arabian market is finally seeing robust demand for rebar, in particular, in the capital Riyadh and on the west coast, driven by mega-projects, with sales increasing month-on-month since October. Mega project contractors have increased their intake volumes, Kallanish notes.
Supply from the local benchmark mill and Al Ittefaq is still low compared to traders' sales to end-users. The benchmark mill has started to discuss with its traders sales contracts for the new year, which will amend the conditions and discount system from the status quo, which has been in place for many years.
The wholesale price – between traders – of the benchmark mill's rebar is at SAR 2,380-2,400/tonne ($635-640), with the low end being ex-works and the high end on a delivered basis. The retail price is SAR 2,430-2,450/t delivered. Both are against cash payment.
In December, prices for 12-32mm diameter grade 60 rebar are as follows:
The benchmark mill's price is at SAR 2,400/t delivered nationwide, while Al Ittefaq is offering at SAR 2,330-2,350/t delivered nationwide and Rajhi Steel is at SAR 2,330/t delivered nationwide.
Yamamah, based in Yanbu, and Watania, based in Riyadh, are both quoting rebar at SAR 2,300/t delivered in their respective areas; however, Yamamah does not impose an extra charge for deliveries to Riyadh if the quantity is sizeable.
Al Jazeera, located in Dammam, has prices ranging from SAR 2,280-2,300/t, subject to customer and quantity, delivered on the east coast. Solb's price is at SAR 2,250/t delivered on the west coast.
Tier-three mills across the country are offering at SAR 2,230-2,250/t, either ex-works or delivered within nearby proximity.
In the wire rod segment, the benchmark mill is at SAR 2,440/t delivered, Al Ittefaq at SAR 2,400/t delivered, Solb at SAR 2,370/t delivered on the west coast and Riyadh. Imported wire rod – of Egyptian origin – is sold at SAR 2,370/t in Riyadh and SAR 2,340-2,350/t on the west coast.
Source:Kallanish
