Posted on 09 Sep 2024
Saudi Arabian domestic billet prices have fallen by almost SAR 40-60/tonne on-week ($11-16) to SAR 2,000/t ex-works or delivered in the same city, Kallanish notes.
Due to growing unsold rebar stocks at producers, semi-integrated induction furnace route-long steel producers are announcing their intention to sell their billet in the merchant market. This naturally increases availability amid muted demand and results in falling prices, according to one industry participant.
The Riyadh-based induction furnace-route longs producer sold two 5,000-tonne 4sp (rebar grade) billet batches at SAR 2,000/t delivered in Riyadh for immediate shipment. An unsolicited ex-China 3sp billet offer was heard at $480/t cfr Dammam for a 30,000t lot for October shipment.
The Saudi benchmark mill has set its scrap purchase index (ceiling price) at SAR 1,550/t for HMS 2, SAR 1,615/t for shredded and SAR 1,620/t for PNS (premium) delivered to Jubail, payable one week after delivery.
In Riyadh, HMS 2 and shredded are priced equally at SAR 1,500-1,550/t depending on the supplier and quality of the material (silicon and carbon content of the scrap). In Dammam, HMS 2 is available at SAR 1,500-1,525/t, while rebar end-cut is offered at a surprisingly low SAR 1,525/t.
Rebar producers are reported to have received a letter from the Ministry of Industry asking the mills to submit their current rebar stocks. The mills perceive this move as the ministry wanting to evaluate stock circulation before deciding whether to implement measures to balance supply with demand. The sources add the government is reluctant to issue new licences for induction furnaces for rebar production.
Source:Kallanish
