Saudi Arabia's benchmark mill, Hadeed, has announced a split pricing structure for its coiled long products for September delivery, according to market participants.
Domestic distributors with signed memorandums of understanding (MoUs) will receive half of their monthly quota, which includes wire rod and rebar in coils, at the same price as August, set at SAR 2,535 per tonne ($676/t) delivered. The remaining 50% of the quota will be priced at a notable discount of SAR 200 per tonne ($53/t), bringing the price down to SAR 2,335 per tonne ($623/t).
This pricing adjustment follows limited coiled long deliveries in August due to technical issues, raising questions among industry observers. Some market participants speculate that the price changes may be a strategic response to potential wire rod imports from China, which have been a concern in the sector.
Additionally, Hadeed had previously announced a SAR 40 per tonne ($10.6) reduction for 12-32mm diameter rebar on August 11, bringing the price down to SAR 2,370 per tonne delivered. The backdrop of these adjustments includes growing panic over sharply falling export prices in China, which is causing ripples across various markets.
