Saudi Arabian rebar producers are declining local billet priced above SAR 2,060/tonne ($549) delivered, as third-tier rebar prices have dropped to SAR 2,115-2,120/t ex-works for cash, according to Kallanish Commodities. Despite this, merchant billet producers are struggling to meet buyers' price expectations due to the scrap-to-billet conversion cost of SAR 450/t. The low demand for rebar, influenced by high interest rates affecting the real estate sector and the Ramadan slowdown, has hindered billet deals with induction furnace-route producers. IF-route billet quotes range from SAR 2,035-2,055/t ex-mill nationwide, facing a scrap shortage with prices higher than regional and global levels. Recently, a rebar re-roller in Riyadh secured 5,000 tonnes of rebar-grade billet at SAR 2,060/t cpt from a Riyadh-based producer. Despite offering the same price to Dammam mills, the suppliers rejected the bid. In Dammam, merchant billet producers could not go below SAR 2,035/t ex-works due to minimal margins after factoring in transportation costs to Riyadh. The current domestic scrap prices are around SAR 1,540-1,550/t for HMS 80:20 and SAR 1,570-1,580/t for prime and shredded in Riyadh. In Jubail and Dammam, prices stand at SAR 1,550-1,600/t for HMS 80:20, SAR 1,645/t for shredded, and SAR 1,675/t for prime. Jeddah buyers are paying SAR 1,425-1,475/t for HMS 80:20, SAR 1,575/t for shredded scrap, and SAR 1,600/t for bundled rebar and prime materials. The tight scrap supply has led major scrap users on both coasts to book imported scrap from the EU to be delivered in late April. This scarcity is expected to persist for another month with elevated prices.