Saudi Arabian steel market activity has begun the week subdued, with the country’s biggest producer, Hadeed, forced to reinstate discounts, Kallanish notes.

Hadeed’s 12-32mm rebar and 7mm+ wire rod prices remain unchanged on-week at SAR 3,100/tonne ($826.6) and SAR 3,300/t ($880) respectively delivered in the country.

However, since last Thursday the producer is offering a discount of SAR 200/t ($53) for rebar for September deliveries, if 50% of the monthly purchase quota agreed with buyers is fulfilled. Discounts are typically given only when 80% of the quota is reached.

Rajhi Steel is offering the same specification rebar at SAR 2,830/t ($754) and Al Ittefaq is quoting at SAR 2,770/t ($738.6), while the lowest quotes are from re-rollers at SAR 2,600/t ($693.3) delivered. Al Ittefaq is offering 7mm+ wire rod at SAR 3,100-3,150/t delivered, while for 5.5mm wire rod an additional SAR 100 is added.

Hadeed announced unexpectedly in mid-August that it was cancelling its discount for September-delivery material. However, with the market slow and local prices pegging at SAR 2,600-2,800/t last week, it’s U-turn on discounts was inevitable, according to market sources.

United Arab Emirates’ market 8-40mm rebar transactions are more or less level on-week at AED 2,420-2,610/t ($659-710/t) ex-works. Oman-based mill Jindal Shadeed is quoting at AED 2,440-2,450/t but on a cpt UAE basis.

The market is a bit stronger this week, although for big volumes discounts are still negotiable and the lowest price for a 15,000-tonne deal will be AED 2,420-2,505/t ($659-682) ex-works, depending on mill, comments a market participant. Stockists are offering rebar at AED 2,600/t ex-works, excluding VAT, but their price is expected to reduce to AED 2,500/t ex-works this week.

Payment is on letter of credit at sight basis, with an additional AED 5/t added for each 30 days bought on credit.

In Iran's domestic market, meanwhile, stockists are offering 12-32mm A3 rebar at IRR 155,963/t ($577) ex-works, excluding 9% VAT. The export price for rebar is at $645/t fob Iran. On Monday one mill was meanwhile heard concluding a 30,000t export deal for 150mm billet at $617/t fob. The destination was not confirmed but thought to be East Asia.