Saudi Basic Industries Corporation has instructed all steel traders to lower their prices by SAR 200 a tonne. The price reduction applies to steel rod sizes between 8 to 32 millimeters.

A source said that the 8 millimeter sized steel rod was previously selling for SAR 3,215 a tonne and the new price is SAR 3,015 a tonne. The 10 millimeter rod was reduced from SAR 3,175 to SAR 2,975 a tonne and the 12 millimeter size was reduced from SAR 2,975 to SAR 2,775 a tonne while sizes of 16 to 32 millimeters were reduced from SAR 2,965 to SAR 2,765 a tonne.

According to a sales manager at a steel warehouse, the new prices have come into effect ever since they were announced by SABIC. He claimed that many steel traders are selling at a loss because their warehouses are full and they have to follow SABIC’s instructions and market trends.

Many contractors and citizens hailed the decision as it will contribute in the lowering of house construction costs. The manager at the Ministry of Commerce’s branch in Tabuk, Mr Adel Al-Enezi said that steel began selling at the lower prices since last Tuesday.

He said that “The quick response of traders has been noted and is appreciated. Inspectors from the commerce department are monitoring the market to ensure that the new prices are being offered by all steel traders.”