DUBAI: Saudi Basic Industries Corp said on Thursday it had cut its domestic retail price for rebar steel by 200 riyals ($53.3) per tonne, effective from the start of this month.
A company statement quoted Abdulaziz Sulaiman al-Humaid, SABIC's executive vice-president for its metals strategic business unit, as saying the reduction would contribute to the stability of the domestic market, as indicators pointed to rising demand for steel now and in the future.
The reduction also keeps pace with developments in regional and global markets, he added. The statement did not specify a level for SABIC's new rebar price, but before the cut, the price of rebar in Riyadh was 2,200 riyals per tonne, implying the cut was about 10 percent, an industry source said. Rebar, or reinforcing steel, is commonly used in construction.
Global steel prices are at their lowest levels in about a decade, according to an index compiled by London-based consultancy CRU. Saudi Iron and Steel Co (Hadeed), SABIC's metals affiliate, is the largest steel producer in the kingdom.
Humaid told Reuters last year that Hadeed planned to add 4 million tonnes of annual steel output capacity to reach 10 million tonnes by 2025.
But earlier this year, SABIC's then-chief executive Mohamed al-Mady said falling steel prices meant SABIC would "think twice" about proposals for two new domestic steel plants in Rabigh and Jubail that were expected to cost $4.26 billion.
Hadeed has a domestic market share of 50-52 percent, Humaid said last year.
Reuters
