The steel market in Saudi Arabia and the United Arab Emirates is witnessing volatility in October. Sluggish demand and elevated costs are directly reflected in pricing.
Price pressure continues in Saudi Arabia
Weak demand and cost pressures in Saudi Arabia prompted Hadeed to reduce long product prices. Rebar prices for 12-32 mm fell to 2,055 SAR/ton (USD 548/ton), while wire rod prices also declined, standing at 2,245 SAR/ton (USD 599/ton) for 6.5-14 mm and 2,295 SAR/ton (USD 612/ton) for 5.5-6 mm products. Market sources in Jeddah noted that the cut was expected but the impact will remain limited given weak demand.
In Riyadh, consumer rebar prices are generally between 2,400-2,450 SAR/ton (USD 641-658/ton), while some mills reported sales around 2,350 SAR/ton (USD 628/ton). Scrap prices, depending on grade, are ranging from 1,200-1,500 SAR/ton (USD 320-400/ton).
Stable trend and scrap pressure in the UAE
The situation is different in the UAE. Emirates Steel Arkan kept October rebar prices stable at 2,590 AED/ton (USD 705/ton), after raising them by 110 AED/ton (USD 30/ton) in September. Experts highlight that this is linked to ongoing construction activity and steady domestic demand in the country.
Scrap market
Local scrap prices edged down by 15-20 AED/ton (USD 4-5/ton) on a weekly basis, as export activity slowed and Pakistan bookings remained muted. The full impact of the decline is expected to appear in new orders for deliveries starting next week.
Current scrap prices (delivered, excl. 5% VAT, one-week payment):
• LMS (50:50): AED 900-1,090/ton, ~75% yield
• HMS 1/2 (80:20): AED 1,140-1,160/ton, unchanged
• HMS 1 (new, no galvanized/cast iron): AED 1,185/ton
• HMS sheared (processed): AED 1,200-1,210/ton
• PNS: AED 1,200-1,220/ton (Sharjah high end, Abu Dhabi low end)
• PNS processed (2x2 feet): AED 1,240-1,250/ton
• Fabrication: AED 1,230-1,240/ton
• End-cut (mainly rebar): AED 1,280-1,305/ton
• HMS shredded: AED 1,270-1,320/ton (Abu Dhabi low end, Sharjah high end)
Analysts underline that in the period ahead, scrap supply, energy costs, exchange rates, and the progress of construction projects will be key drivers of pricing. While Saudi Arabia is likely to remain under pressure, a more balanced trend is expected in the UAE.
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