Saudi Iron & Steel Company (Hadeed) has lowered its price for 16-32mm diameter rebar for the domestic market by SAR 250/tonne ($67) to SAR 2,150/t ($573) delivered nationwide.

Saudi rebar market participants tell Kallanish the reduction has been implemented to close the gap between local prices and those offered for import from neighbouring United Arab Emirates and Oman.

Rebar of 10-14mm dia was reduced by SAR 200/t to SAR 2,220/t delivered, while 9mm dia wire rod has come down SAR 200/t to SAR 1,900/t.

“Frankly, this month until the end of July will be a hard time,” a Saudi trader says. The construction sector remains active, although output has been adjusted down due to the Covid-19 lockdown, he adds.

Emirates Steel and Conares in UAE announced a few days ago they were keeping rebar prices unchanged on-month at $460/t ex-works for May deliveries to the domestic market (see Kallanish passim).

Hadeed’s first-quarter crude steel output fell -2.2% on-year to 2.06 million tonnes. Following years of stagnation, economic growth in the kingdom had been expected to rebound from 2020, supported by Saudi Vision 2030 projects, but now the coronavirus pandemic has struck.