Saudi Arabia's benchmark mill has raised its scrap buying prices by an additional SAR 50/tonne ($13.3) this week, following a previous increase of SAR 50/t announced on 28 October.

The new prices, effective 5 November, are set at SAR 1,500/t for HMS 1/2 80:20, SAR 1,555/t for shredded scrap, and SAR 1,560/t for premium (PNS), market sources tell Kallanish.

The recent increases in raw material prices may lead Al Ittefaq and Al Rajhi to reassess their rebar sales prices. Last week, Al Rajhi announced it would maintain its rebar price for November at SAR 2,250/t, consistent with the October price. Meanwhile, Al Ittefaq settled at SAR 2,280/t. Both prices include delivery across the country on 90-day letter of credit. Al Ittefaq is expected to raise to SAR 2,300/t next week.

Al Ittefaq, Saudi Arabia’s second-largest rebar producer, completed a shipment of 15,000 tonnes of 18-meter-long rebar to Canada from Jeddah port on 26 October. This marks the first-ever time Saudi has shipped rebar to Canada. New offers from different Gulf Cooperation Council suppliers to the Canadian market are at around $610-617/t fob Saudi port against LC at sight.

Al Ittefaq is otherwise concentrating on domestic market shipments, particularly for sizes of 20mm diameter and above, reaching dispatches of 7,000 to 8,000 tonnes/day for the local market.

Following the benchmark mill's rebar price increase of SAR 50/t to SAR 2,350/t delivered LC 90 days for November rolling, announced last week, Solb in Jazan is quoting at SAR 2,250/t delivered to Riyadh and west coast. Watania, which has limited supply, is at SAR 2,250-2,270/t delivered within Riyadh, while Watani is at SAR 2,250/t ex-works or delivered within near proximity. Al Yamamah is pegged at SAR 2,250/t, with a SAR 30/t premium delivered to Riyadh.

Solb is offering 6.5-11mm wire rod at SAR 2,370-2,380/t delivered to the buyer’s yard in Riyadh and west coast.

The benchmark mill’s rebar is at SAR 2,330-2,350/t in wholesale (between traders) and SAR 2,350-2,370/t in retail markets, both delivered against cash.

"Interest rates have been reduced to 2.59%, and banks now require a 45% cut from mortgage takers’ salaries, down from 65%. This change provides better conditions that are expected to positively impact the real estate sector, which has experienced more than a year of slowdown," comments a reputable source.