Saudi Arabian steel market slows as Hajj approaches

The steel market in Saudi Arabia has slowed in the run up to the Hajj, as buyers postpone bookings until after the annual Islamic pilgrimage to Mecca.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

Even though the country’s import sources are trying to increase prices and end-user demand in the country is strong, buyers are in no hurry to book.

Hot rolled coil (HRC) was offered into the country at $615 per tonne cfr from India, $610 per tonne cfr from Egypt, and $620-630 per tonne cfr from East Asia.

The offers are for November-December delivery.

Previous import offers for HRC were $590-610 per tonne cfr.

Rebar was offered to Saudi Arabia at $600-610 per tonne cfr, slightly up from last week’s $600-605 per tonne cfr.

Saudi Arabian traders believe the market will improve after the Hajj, which is in mid-October. However, they added that, by then, companies may be busy with year-end inventory calculations and will postpone bookings to 2014.

However, other sources remained optimistic.

“Saudi Arabia is still one of the strongest economies of the region with lots of government spending on infrastructure and construction,” a market participant told Steel First. “I believe steel demand will be strong in the country in 2014 as well,” he added.

What to read next
Any bolstering effect on US ferrous scrap exports from the up-month in February’s domestic trade will be tempered in the immediate aftermath of two earthquakes in Turkey — the country’s largest importing region — on Monday, February 6
Steel trading and production have come to a halt in the eastern Turkish region of Iskenderun following a devastating earthquake that hit the region on Monday February 6 and put mills in the area under force majeure, sources told Fastmarkets on Tuesday
A 120-day closure of four Illinois dams scheduled for 2023 will disrupt barge shipments and have potentially both negative and positive impacts on scrap and finished steel products from Canada to Texas
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.