Conditions in the Saudi longs market are favourable. For example, traders have started replenishing their below-average stocks in view of upward trend in the world market as well as due to high number of construction projects planned for 2011.
Nevertheless, quotations of rebar have remained unchanged from mid-December so far. However, local producer Hadeed has decided to hold its rebar back to sell it in January at higher prices. Thus, its prices are just nominal now. Nevertheless, the producer has already raised prices for wire rod by $28/t (SAR 105/t) from mid-December last week. Besides, market operators expect that prices for local rebar will add approx. $30-50/t (SAR 113-188/t) in January on continuous growth of quotations in the world rebar market.
In these conditions Saudi buyers are starting to show demand for import rebar, which is priced $10-20/t below the level of domestic prices. Qatari rebar has reportedly been booked this week at $726/t (SAR 2,723/t) CPT Riyadh. Nevertheless, foreign suppliers are expected to continue driving their prices upwards. In particular, Turkish exporters are expected to raise their offers by $10/t next week anticipating firmer demand from foreign buyers.
The situation in the market for structurals is somewhat worse. Traders are in no hurry to purchase again in view of slack end-user activity, as they have already restocked on the material before.
Source: www.metalexpert-group.com