Posted on 24 Jul 2025
For the first time in a year, local billet prices in Saudi Arabia have fallen below imported offer values from the Far East, highlighting a shift in market dynamics as domestic supply becomes more competitive, Kallanish notes.
Currently, 130mm 3sp billet is offered locally at SAR 1,800-1,825/tonne ($480-487) ex-works in Dammam and at SAR 1,845-1,875/t delivered to central regions like Riyadh and Al Kharj. This compares favourably against Far East-origin 150mm 3sp billet offers at $480-485/t cfr (liner out) for October shipments, with delivery to Dammam or Jeddah ports up from last week's offers at $460-465/t cfr.
Transport costs from Dammam to central Saudi Arabia for billet and rebar range between SAR 40-45/t, adding cost for inland buyers.
In the scrap market, delivered HMS scrap is offered at SAR 1,380-1,400/t in Jeddah and SAR 1,425/t in central regions, with shredded scrap reaching SAR 1,450/t. In Dammam, HMS is priced at SAR 1,450/t. Prices exclude VAT and assume payment within one week. For extended payment terms beyond 30 days, suppliers are applying a SAR 40-50/t premium.
Meanwhile, a central region mill has secured 60,000 tonnes of August-shipment hot-briquetted iron with 78-79% Fe content at $319-320/t delivered.
Separately, Tameer Steel has confirmed it will begin operating a new Vezzani-supplied scrap segregation and shearing line at its plant in Jeddah by late August or early September, which will help process domestic scrap more cost-effectively. Capacity of the shearing line will be 1,000 tonnes/day.
A senior mill official notes: “Imported billet offers are no longer competitive. Local scrap prices have improved but still need to drop SAR 50-75/t to match global levels.”
Source:Kallanish
