Competitive Pricing Pressure
Egyptian-origin wire rod is being offered in the Riyadh wholesale market at SAR 2,380/tonne ($635), putting significant pressure on local prices. Similarly, Solb’s wire rod prices to Riyadh traders match this figure, while the benchmark mill prices stand slightly higher at SAR 2,440/t, both delivered, according to Kallanish.
Rebar Market Dynamics
- The benchmark mill’s rebar prices are SAR 2,350-2,380/t in the retail market and SAR 2,330/t in wholesale trades, all for cash payments.
- Some rebar sizes are reportedly in short supply, prompting distributors to secure pre-agreed volumes from suppliers. Both Hadeed and Al Ittefaq are experiencing increased inquiries as year-end approaches.
- Demand for rebar remains robust, driven by Saudi Arabia’s Giga projects, particularly in Riyadh. Market participants anticipate a SAR 50/t price increase for December-rolled rebar. However, wire rod prices are likely to stay flat due to the competitive Egyptian offers.
Tier-Three Producer Activity
Tier-three rebar producers are facing low inventory levels and are working to fulfill orders.
- Riyadh and Jeddah: Prices range from SAR 2,170-2,200/t ex-works (cash).
- Dammam: Prices are slightly higher, at SAR 2,210-2,240/t.
- A trader reported concluding a rebar deal with a contractor at SAR 2,250/t delivered, for material supplied by Al Ittefaq.
Outlook
While rebar prices might see upward movement due to demand from mega-projects, wire rod prices are expected to remain under pressure as long as discounted Egyptian offers dominate the market.
