Posted on 24 Apr 2025
Billet importers in Saudi Arabia have sealed perfectly-timed deals, converting their long-standing enquiries just before Chinese futures gained on Wednesday, Kallanish notes.
Two separate Saudi rebar producers, both based on the west coast, booked China-origin 0.6% manganese (4sp) 150mm billet at $553/tonne cfr (liner out) King Abdullah port for 50,000 tonnes for mid-July load readiness. The other cargo was concluded at $557/t cfr (LO) Jeddah port for 55,000t for end-June shipment.
Meanwhile, the local billet market is at a standstill as rebar re-rollers prefer to wait for the benchmark mill’s May-delivery rebar prices. Local billet producers are quoting 130mm 3sp billet at SAR 1,950-1,975/t ($520-527) ex-works across the nation.
The benchmark mill has rolled over its scrap buying prices effective 23 April, valid for 45 days, at SAR 1,645/t for premium, SAR 1,640/t for shredded, SAR 1,575/t for heavy, SAR 1,181.25/t for oversize, and SAR 1,102.5/t for light material. This is payable one week after delivery and delivered to its mill-adjacent scrap yard in Jubail.
However, it has set quotas for each supplier. If suppliers fulfil their quota within a certain timeframe – 15-20 days – they will receive a SAR 100/t bonus extra only for the quantities above the quota. This is until the price validity expires in 45 days.
Following the scrap price decline to $325/t cfr Türkiye for HMS 80:20, Saudi coastal integrated mills are seeking imported scrap, which is almost SAR 200/t cheaper than local material of the same grade. A few mills have already begun negotiations.
Source:Kallanish
