Demand has somewhat slackened in the Saudi Arabian flats market, although it is still moderate on the whole. Amid unstable global market situation some projects have not been accepted. Thus most stockists, who have moderate inventories, as well as end-users have mostly cut purchases. At the same time some trading companies have decided to leave the market at all until the situation gets clear.
Meanwhile, buyers from Saudi Arabia still prefer to purchase local steel products; besides, they have no other choice given practically no offers from foreign suppliers. In this situation as well as pointing to an expected continuation of an upward trend in import segment, the major local producer Hadeed has raised prices for flats to be rolled in April by $15-30/t compared to a month ago. It is clear that the rise will be accepted as offers of most foreign sellers are much higher. Saudi Arabian secondary market has also seen the upward trend ($20-35/t up over the same period).
Besides, main foreign suppliers of flats, such as Egypt, Japan, South Korea and China, have not released new prices to Saudi Arabia yet, but they are expected to move up for sure. Nevertheless, market players estimate Chinese HR coils 3 mm thick and more of SS400 grade and 1 mm CR coils will be available by $30-40/t higher than a month ago – at $795-815/t C&F Dammam and $800-815/t C&F Dammam, respectively. At present only traders offer the material from Egypt so far, but it is priced by $25/t higher than last-month quotations of Ezz Steel.
(Source: www.metalexpert-group.com )