KSA firms eye foreign steel as local prices stay high
Prices of ferrous metals continue to fall as a result of the continuing Eurozone crisis
Saudi construction firms are considering the likelihood of forming consortia to buy steel from abroad, encouraged by the decline in international steel prices and the lack of response from local manufacturersto follow suit.
Prices of ferrous metals continued to fall for the second consecutive week to $630 per tonne on June 12, compared with $650 a week earlier, partly as a result of the continuing euro crisis and anticipations of Greek exit from the EU.
The price of billets has stabilised at the beginning of the month at $600 per tonneon June 5, 2012. Scrap prices also dropped to $365 per tonne on June 12 from $390 on June 5, while the price of cast iron stabilised during the first week of the month at $495 per tonne.
Saudi Arabia’s steel production is forecast to grow by a CAGR of 9% between 2012 and 2015, RNCOS said in its ‘Saudi Arabia Steel Industry Forecast to 2013’ report earlier this year.
Earlier this month, it was revealed that the Indian state run steelmaker, Rashtriya Ispat Nigam Ltd was in talks with Saudi Arabia’s Rajhi Steel to set up a 3 million tonnes per year plant in the Kingdom.
According to a Press Trust of India report, the gas fired plant would require an investment of $3.5bn.
