30/03/2010
Proposing a common-pricing for iron to adjust the local market
In a move to control prices of iron manner to be more equitable to the consumer, manufacturer, trader, after touched by rises over the past years and subjected to interactions, local and global conditions, it is proposed for standardized pricing per ton of local and imported iron in the Saudi market.
Data derived from the price index have revealed the iron prices proposed to the Ministry of Trade and Industry official website, revealed the high differences in the final sale price of the commodity between the domestic product that the average price per ton to 2200 riyals. The importer who arrived in the average price per ton to 2800 riyals, which contributed to create a black market and the environment speculative commodity iron aims to achieve a quick profit margins.
Below are more details:
In a move to control prices of iron manner to be more equitable to the consumer, manufacturer, trader, after touched by rises over the past years and subjected to interactions, local and global conditions, it is proposed for standardized pricing per ton of local and imported iron in the Saudi market.
Data derived from the price index have revealed the iron pricesproposed to the Ministry of Trade and Industry official website, it revealed high differences in the final sale price of the commodity between the domestic product that the average price per ton to 2200 riyals. And the importer who arrived in the average price per ton to 2800 riyals, which contributed to create a black market and the environment speculative commodity iron aims to achieve a quick profit margins.
This price variation comes in time of exporting some of the signs of the emergence of the local steel plants an unhealthy environment within the domestic steel market created by the price gap, which requires fast action to take before it leads to significant damage to the national industry and thus in short supply, especially with the price of cost of production of iron currently about 2500 riyals per ton.
According to data from the iron factories operating in the Saudi market, the prices of iron ore have risen globally with the beginning of March, to reach its current value about $ 200 per ton, which represents about 700 riyals additional cost in the price of one ton of iron. As the rising price of iron ore a similar rise in the prices of imported steel blocks of about 1900 riyals per ton to around 2450 per ton, proportion of these elements ranged between 70 per cent and 90 per cent of the total cost of reinforcing iron factories in accordance with the methods and techniques for each plant, as the other elements such as electricity and gas forms the rest.
In a comparison between the prices of final local and imported - in accordance with the, «Trade and Industry» indicator, the prices of «SABIC» iron in Riyadh for example was as follows: 2410 riyals per ton of size 8 mm, 2370 riyals size 10 mm, 2230 SAR of size 12 mm, 2210 riyals to size 14 mm, 2200 SR 16 mm size. While the prices of «Etifaq» iron respectively was: 2470 SR, 2430 SR, 2295 SR .2275 SAR and SAR 2265, while the prices of «Yamamah» iron were the same sizes: 3150 SAR, 3115 SAR 2965 SAR .2945 SAR, and 2935 SAR. On the other hand, we find that the iron prices for Saudi Group Company for Building Materials (Chiniese&Turkey imports) reached: 2870 riyals per ton of size 8 mm, 2830 riyals for size 10 mm, 2780 riyals for size 12 mm, 2760 riyals for size 14 mm, and 2750 riyals for 16 - 32 mm. Qatar iron Prices amounted the same, respectively: 2920, 2880, 2830, 2810 and 2800 riyal.
