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Steel & Metal
- Saudi Arabia -

Riyadh mills slash rebar prices close to billet levels.

Riyadh-based semi-integrated rebar producers have reduced their ex-mill rebar transaction prices to approximately SAR 2,080 per tonne ($555) from SAR 2,115-2,120 per tonne a week earlier, representing a slight SAR 15-40 per tonne increase compared to delivered billet prices in Riyadh. These adjustments apply to volumes exceeding 3,000 tonnes.Meanwhile, third-tier rebar producers in Dammam have revised their ex-mill rebar quotes to SAR 2,140-2,160 per tonne from SAR 2,180-2,200 per tonne, as reported by Kallanish.The slowdown in rebar sales, influenced by the Ramadan period, has prompted semi-integrated mills to seek to reduce their substantial inventories before the upcoming 10-day Eid holiday, starting on April 5 for most private sector entities and all public institutions, concluding on April 14. These semi-integrated facilities encompass induction furnace billet mills that manage their rebar re-rolling lines.In response to increased transportation expenses, traders are pricing the benchmark mill's rebar at SAR 2,280-2,290 per tonne wholesale (inter-trader) and SAR 2,300-2,350 per tonne retail for cash transactions, both on a delivered basis.Al Ittefaq, a second-tier rebar producer, is contemplating adjusting its rebar price following the decline in third-tier rebar rates.A senior mill official elaborated, stating, "Rebar prices in the Kingdom are declining due to the subdued market conditions. The conversion cost from billet to rebar stands at no less than SAR 110 per tonne in the Kingdom. Mills are facing losses at the current rebar price level in Riyadh of SAR 2,075-2,080 per tonne ex-mill.

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