Saudi Arabian merchant billet producers are trying to raise prices, which is meeting resistance. However, given increased rebar quotes, rebar re-rollers will inevitably accept new quotes for billet due to the well-known ultra-high prices of local scrap amid limited collection, notes Kallanish. Meanwhile, the Saudi benchmark mill has rolled over scrap purchase prices for July transactions from June, which have been unchanged since January. The move is to prevent further price escalation and maintain stability in the domestic market.
Ex-mill prices for rebar grade (4sp) billet are at SAR 1,980/t in Jeddah and SAR 2,010-2,025/t in Riyadh and Dammam. From the coming Sunday, mills are expected to revise their quotes upon the cost increase. Local scrap demand is high, and merchant billet producers in Riyadh and Dammam are paying SAR 1,550-1,570/t delivered for HMS 80:20 grade.
The country's largest merchant billet producer, Al Qaryan, ended 2023 with 147,000 tonnes of billet exports, comprising 42% of its production. The company is expanding, with ABB contracted to supply another induction furnace, which will increase annual billet production capacity by a further 150,000 tonnes from the current 350,000 t/year. The unit is expected to start commercial production in June 2024, senior company official Usama Fouad tells Kallanish.
