Galvanized successive declines steel prices on the global level Saudi investors and contractors to resume imports from abroad after the Ramadan period which saw the anticipation by investors for global price indices.
After the stability lasted for four weeks experienced world prices for ferrous metals, prices declined in most crudes in the second week of September.
Investors said in their conversations with "Riyadh" The succession of price declines globally encourage them to import large quantities of iron after an increase in demand after the Ramadan period.
They emphasized that the price difference between import and domestic prices, which are in favor of import motivates investors to import large quantities to meet domestic demand and to take advantage of price differences.
Khaled al-Qahtani investor sector contracting and resource building materials: the current situation has become tempting for investors to import to benefit from price differentials between imported products and shoddy Arabia and the local product, which is oil prices now by global standards high, reaching up differences price to hundreds of dollars per ton.
He revealed that the number of contractors to negotiate directly with many international companies in China, Turkey and Ukraine to import large quantities of iron and re-registration of new orders after a period of Ramadan, supported by the high level of demand on the domestic market as a result of government projects and large housing projects for citizens.
For his part, criticized the investor sector contracting Mohammed Saad lack interaction domestic market with declines global stability price index iron Department of Commerce for local companies manufactured and which was formerly the direct interaction when prices rise globally despite buying large quantities old prices and sold to consumers in accordance with the course of global conditions.
While does not have any impact to lower prices locally by manufacturers Bhetwala global declines, which draws more than a question mark over the policy of raising prices locally when it rises globally and this is expected and installed dips International.
He pointed out that many of the Arab and Gulf markets reacted with global declines and Oakptha cut prices, except for the local market that exploits the increased demand of price fixing.
The price dropped tons billet crude, the key element in the manufacture of iron to $ 580 on September 11, 2012, compared with a week that kiss, which amounted to $ 600 on September 4, down $ 20 per tonne, as the price of tons rebar to 615 dollars on September 11 2012, compared with the week before, and which amounted to $ 630, down $ 15 per tonne.
And settled price of a ton of scrap cut at $ 380 on August 11, 2012, while the price of tons of steel coils flat on the "hot" for up to 555 dollars on August 28, 2012, compared to prices on 4 September, which amounted to $ 565, down $ 10 per ton, and stabilized the price per ton of cast iron at $ 495 on September 11, 2012.
The Ministry of Trade and Industry informed the Council of Saudi Chambers to previous necessity circular on contractors who carry out construction projects government need to use iron to allow them to use imported steel as an option for the implementation of these projects and reduce the huge demand for iron factory locally in order to reduce rising prices.