Egypt tops Saudi Arabia's African trade partners with $20.4 billion in 2022:
In a significant economic development, Egypt has secured its position at the forefront of Saudi Arabia's trade partnerships within the African continent for the year 2022. According to data released by the Saudi Statistics Authority, Egypt led the list with a substantial trade value amounting to $20.4 billion.
This notable figure underscores the robust economic ties between Saudi Arabia and Egypt, reflecting a deepening collaboration that has strengthened over the past year. The trade partnership between the two nations spans various sectors, contributing significantly to the economic growth of both countries.
South Africa secured the second position in Saudi Arabia's African trade network, with a trade value of $5.5 billion. This underscores the diversification of Saudi Arabia's economic engagements within the continent, emphasizing the Kingdom's commitment to fostering partnerships with multiple nations.
Morocco followed closely, claiming the third spot in the list of Saudi Arabia's African trade partners. The trade value between Saudi Arabia and Morocco amounted to $4.4 billion, reaffirming the steady and mutually beneficial economic relationship between the two nations.
The released data highlights Saudi Arabia's strategic efforts to enhance economic cooperation with African countries, fostering trade partnerships that contribute to the overall economic prosperity of the involved nations.
Fluctuations in Egypt's steel market:
The most recent update on Egypt's steel market indicates that daily monitoring of rebar prices shows a fluctuation within the range of EGP 34,000 to EGP 31,500 ($1100,56 - 1019,64) EXW. This information provides insights into the dynamic pricing environment within the Egyptian iron market, reflecting ongoing changes in market conditions.
Stable market conditions with price increase in Iraq:
In Iraq, the steel market is currently stable, with production costs approaching uniformity across all factories. While profit margins are not as high as before, activities are running smoothly. Prices have increased by $5 this week, reflecting the favorable market conditions.
Economic challenges impacting steel prices in Yemen:
Yemen's steel market is experiencing economic challenges, including a currency collapse, resulting in weak demand. In the latest update on the rebar market in Yemen, daily monitoring of rebar prices reveals at 2300 mt EXW Saudi riyals. ($613 mt ). There is a possibility of price decrease next week due to the ongoing economic crisis.
Oman steel market downturn in coming weeks:
In the current market, steel prices are exhibiting a relatively stable trend with intermittent fluctuations. These fluctuations, characterized by both minor and major shifts, stem from various factors, including changes in currency values, fluctuations in the dollar's strength, and increases in energy prices.
While the market has demonstrated resilience to maintain stability, analysts are forecasting a potential downturn in the upcoming weeks. As we approach the year-end and witness a diminishing demand for steel products, it is envisaged that the market will experience a period of sluggishness. Consequently, industry experts anticipate a decline in prices, influenced by the convergence of these factors.
In the last seven days, Oman has successfully sold approximately 20,000 tonnes of rebar at $607-608 (2,230-2,235 dirhams) per tonne CPT UAE. This marks a decrease from the previous deal levels, which were at $612-618 (2,250-2,270 dirhams) per tonne CPT.
Dynamics and challenges in the UAE steel market:
In a recent development, steel import prices to the United Arab Emirates (UAE) and Saudi Arabia have experienced a notable uptick, primarily driven by heightened offers from China. The surge in prices underscores the impact of global market dynamics on the steel industry. Recent developments in the Hot-Rolled Coil (HRC) market have showcased dynamic pricing trends, with buyers in the United Arab Emirates (UAE) securing small quantities at $585-590 per tonne CFR from China. Simultaneously, Japan has adjusted its offers, presenting HRC at $600-610 per tonne CFR. This marks an increase from the previous week's offers, which stood at $590-600 per tonne CFR for the UAE.
The United Arab Emirates (UAE) steel market is currently navigating through a challenging phase, primarily driven by pressure on billet prices stemming from sluggish sales in the construction steel sector. This report delves into the recent developments, market disruptions, and key factors influencing the dynamics of the UAE steel market.
The recent introduction of discounted prices for rebar by certain steel factories has disrupted the market dynamics. This has led to constraints for other rebar suppliers, limiting their sales to 60-70% of their monthly volumes in the local market.
Billet producers in the UAE have strategically set a target price of $525/t. This is being achieved by progressively reducing domestic market prices by $5-10 on a monthly basis. Simultaneously, the offer for Oman-origin billet for November delivery aligns with this target price at $525/t.
Transactions for the 150mm 3sp billet of Iran origin were noted at $465-470/t FOB. However, CFR prices have experienced an upswing, reaching $495-500/t CFR UAE ports. This increase is attributed to the escalation in sea insurance premiums, influenced by recent events in Gaza.
The steel market intricacies are further compounded by a significant surge in local scrap offers in the UAE. Despite the scrap export ban in the UAE, there is an increasing export of scrap to Bangladesh and Pakistan through Bahrain. This has propelled scrap prices upward, with producers responding by elevating scrap purchase prices. Prices now stand at AED 1,225/t (334$) for sheared, AED 1,275/t ($347) for premium (PNS), and AED 1,325/t (361$) for shredded. Scrap prices were stipulated at AED 1,110-1,130/t (305-308 $) for HMS 80:20 grade and AED 1,200-1,230/t (327-335 $) EXW. The anticipation of price increases in the upcoming week injects an element of uncertainty into the dynamics of the steel market.
As China takes strategic measures to reshape its pricing approach, importers in the UAE and Saudi Arabia find themselves grappling with the resulting spike in costs. The increased offers from China have resulted in a ripple effect, influencing the overall pricing structure in the steel import market for these Middle Eastern nations. This shift in import prices poses challenges for local industries reliant on steel for construction, manufacturing, and infrastructure projects.
Emirates Steel Arkan keeps rebar prices unchanged for November production:
Emirates Steel Arkan has opted to maintain its rebar prices for orders scheduled for production in November. The company is presenting rebar at 2,523 dirhams ($687) per tonne CPT Abu Dhabi and 2,531 dirhams ($689) per tonne CPT Dubai and Northern Emirates.
This decision underscores Emirates Steel Arkan's dedication to price stability in response to the prevailing market dynamics. The offered rates reflect the company's strategic approach in the competitive landscape of the regional steel market.
Concerns over lack of demand impact steel industry in Iran:
In a recent development in the Iranian steel market, sponge iron producers are expressing concerns about potential constraints with the onset of the cold season. Producers believe that the production process may face limitations during this period, inevitably leading to an increase in the price of sponge iron.
As the industry braces for seasonal challenges, producers are urging the commodity exchange in Iran to grant authorization for a price increase. This plea comes in light of their anticipation of elevated production costs and the need for adjustments to ensure the sustainability of sponge iron manufacturing in the Iranian market.
The call for an increase in prices is underscored by the producers' understanding of the economic dynamics and the necessity to maintain a viable and thriving sponge iron sector within the Iranian steel market.
In a recent update on Iran's steel industry, a notable decrease of 2.8% has been reported in steel consumption.However, the overall apparent consumption of steel products has seen a notable 4.1% increase, and the apparent consumption of sponge iron has recorded a 2.4% rise.
In the current week, the total volume of rebar transactions reached approximately 148,000 tons, equivalent to 59% of the total supply volume. About 33% of rebar transactions this week were conducted through matching, indicating a weak demand for rebar and customers' strategy of patience and waiting for the completion of the price stabilization period.
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