Demand for Flat Rolled Steel in Saudi Arabia Continues to Decrease

Demand for flat rolled steel in Saudi Arabia continues to decrease as the beginning of Ramadan is a week away. Steel Business Briefing is informed by market players that consumption is expected to pick-up by mid-September after the Eid holiday comes to an end. Flat steel consumption in Saudi Arabia in May and June was quite strong compared to its neighbouring countries, as reported. However, the latest decrease was anticipated in advance as business activity declines during Ramadan, which runs throughout August, because working hours for Muslim workers decrease in that period. Hot rolled coil is offered to Saudi Arabia at $740-780/t cfr, representing little change from last week’s $740-760/t cfr. The list price of local producers is $800/t but some discount is given for big quantity buying. Local buyers believe prices will not change much during August but that they may increase in September as stock levels by then will be fairly low. Source:steelbb.com