Saudi Arabian sheet demand strong but prices could decline
Last Update: 13/10/2011 13:15:11
Demand for flat rolled steel in Saudi Arabia remains strong, unlike in the remainder of the Middle East; however, local prices need to be decreased as they now exceed average global levels, Saudi market players tell Steel Business Briefing. Local producer Hadeed SABIC did not change its price for October bookings from the previous month, as reported. The company’s hot rolled coil base price is $830/tonne. Saudi sources say 1.2mm imported HRC is offered to the country at $780/t cfr, while 2mm and above is $740-750/t cfr. Saudi sources believe that, despite strong demand in the domestic market, local prices need to be decreased in order to prevent imports. The Eid and Hajj holidays are expected to slow down steel consumption in November for 7-10 days; however, local sources tell SBB the country’s flat steel demand is expected to stay strong for the remainder of the year, as government expenditure on new construction projects, as well as infrastructure maintenance work, is likely to increase further.
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