Price of scrap iron increases 8.3pc
Jeddah, January 20, 2008
Price of scrap iron in Saudi Arabia jumped 8.33 per cent in the beginning of this year to SR1,300 ($346.65) per tonnes.
Industry analysts also forecast an increase in rebar demand in the local market by more than 10 percent during the current year, reported in Al Eqtisadiah newspaper.
Talal Al Ahdal, an investor in the scrap iron business, was quoted as saying that the price scrap iron rose by about 80 per cent last year as against 2006, indicating that the increase was influenced by a decision allowing export of iron to other countries as part of commitment to the World Trade Organisation.
“The prices of scrap iron exceeded SR1,200 for the one ton in the beginning of this year, whereas last year prices did not exceed SR1,100,” Al Ahdal said, adding that request for huge volume of scrap iron from China and India contributed to the price increase. He also said scrap iron dealers were expecting a big jump in the price of iron during the next three years.
However, investors emphasised that scrap iron prices in the Kingdom are always low compared to world prices in the International Iron Stock Exchange.
Traders expected that the Saudi Arabia’s consumption of iron and steel during the next three years would exceed more than 36 million tonnes with more 13 million tonnes over the past three years. The volume of consumption throughout the last three years was 23 million tonnes, an increase covering 80 per cent of the market need.