Posted on 27 May 2025
Rebar prices and demand are softening in Saudi Arabia’s secondary market, potentially foreshadowing a broader decline in June-delivery prices. The Hajj season and upcoming Eid Al-Adha holiday will reduce the number of working days in June, prompting concerns about slowing demand, Kallanish notes.
Wholesale prices for benchmark mill rebar – traded between wholesalers – have dipped to SAR 2,260/tonne ($602.6) ex-works, down from last week's SAR 2,270-2,280/t range. Retail prices for end-users have also fallen slightly, now standing at SAR 2,290-2,300/t, a decline of SAR 10-20/t on-week.
For delivery to Dammam, Riyadh-based tier-three producers are offering rebar to traders and downstream plants at SAR 2,120/t delivered, with Dammam-produced material priced at SAR 2,150/t delivered. Both quotes are against cash terms.
Meanwhile, Al Ittefaq Steel continues to commit May-delivery orders at SAR 2,200/t delivered, under 90-day LC terms. Solb Steel in Jazan is expected to start coils and rebar deliveries after the Eid holiday, with meltshop operation scheduled to restart at end-May. The firm is reported to have been out of the market this month.
With subdued trading activity expected in June due to fewer working days and religious observances, market participants are watching closely for further pricing adjustments, especially from major mills.
"We have reasonable and manageable stocks in our yard but see no demand. Our phones are not ringing and rebar sales stopped," comments a senior Al Kharj-located mill official.
Source:Kallanish
