Hadeed’s July rebar pricing expected to guide market

Scrap prices in Saudi Arabia have softened slightly this week following the benchmark mill's procurement price rollover. However, growing concerns over delayed payments from mills have led to tightening supply from local scrap collectors, which is being felt acutely in key regions like Riyadh, Al Kharj, Jubail and Dammam, notes Kallanish.

Currently, HMS 2 is transacting at SAR 1,450-1,480/tonne ($387-395), shredded scrap at SAR 1,525/t, and premium scrap at SAR 1,550/t in the central regions – Riyadh and Al Kharj – and eastern region of Dammam. By contrast, prices in Jeddah are approximately SAR 50-75/t lower, reflecting weaker demand from key buyers due to ample stocks.

Meanwhile, imported billet offers from China have been heard at $452-457/t cfr west coast ports, with the higher end of the range targeting Jeddah, where discharge rates are typically lower. The parcels, ranging from 45,000-50,000 tonnes, are for 150mm 4sp billet with a minimum of 0.6% manganese, scheduled for September loading.

Domestically, the billet market remains largely quiet. Long products producers are in wait-and-see mode, anticipating the pricing direction that will follow the upcoming July-rolling announcement from the benchmark producer, Hadeed. This decision is expected to influence purchasing and pricing sentiment across the Saudi steel market. The latest transaction prices were at SAR 1,895-1,920/t delivered in Riyadh or Al Kharj. 

Source:Kallanish