The Saudi Basic Industries Corporation (Sabic) has announced a reduction of SR200 ($53) per tonne in the retail price of rebar in all regions of the kingdom, effective September 1.

Abdulaziz Sulaiman Al Humaid, Sabic executive vice president, Metals Strategic Business Unit, said that the reduction contributes to the stability in the domestic market for the good of the public, as indicators point to rising demand for steel in the current and coming periods.

The reduction also keeps pace with developments in the regional and global markets, he said.

Reuters adds: The statement did not specify a level for Sabic's new rebar price, but before the cut, the price of rebar in Riyadh was SR2,200 per tonne, implying the cut was about 10 per cent, 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 Company (Hadeed), Sabic's metals affiliate, is the largest steel producer in the kingdom.

Al Humaid told Reuters last year that Hadeed planned to add four 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 per cent, Al Humaid said last year. – TradeArabia News Service