Due to increased transportation costs and higher raw material prices, Saudi Arabian mills are increasing their rebar prices. The decision was encouraged by the benchmark mill raising its rebar prices last week by SAR 25/tonne ($6.6) versus May to SAR 2,375/t delivered for June rolling, notes Kallanish.

Saudi Arabia's other major mills, Al Rajhi and Al Ittefaq, set their average price at SAR 2,306/t and SAR 2,275/t, respectively, delivered nationwide.

After increasing their list prices by SAR 25-50/t for June deliveries, Al Yamamah, based in Yanbu, has revised its list price to SAR 2,280/t delivered to Riyadh. Watania's price is at SAR 2,260/t for delivery within Riyadh, Watani's price is at SAR 2,200/t ex-mill, and Shadid's price is at SAR 2,160-2,170/t ex-mill. All require cash payment.

"All mills are raising their prices but, due to low demand pull, they might be forced to compromise in order to close deals at previous price levels. Margins have been eroded and I see no light at the end of the tunnel," says a senior mill official.