Arabian Business reported that Saudi Basic Industries Corporation has seen steel orders from within Saudi Arabia drop up to 15% due to a slowdown in the construction sector.
The report citing a manager at SABIC said that it had seen a reduction in orders of 10% to 15% in the past few months and predicted demand could weaken further.
The manager reportedly said that “Prices fluctuate, there have been many decreases recently and there’s still some fear from customers to place orders. Everyone is watching out for prices now and there’s fear in the market and everyone is predicting there may be another decrease in price. I believe that in 2009 there might be recovery for demand and prices in the first quarter of 2009.”
Meanwhile SABIC’s suspension of rebar steel exports, in place since June 2008 would most likely be lifted in 2009, but the exact date would be determined by the government.