SABIC cuts domestic rebar steel price

Updated 03 September 2015
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SABIC cuts domestic rebar steel price

JEDDAH: Saudi Basic Industries Corp. 2010.SE said it had cut its domestic retail price for rebar steel by SR200 per ton, effective from the start of this month.
A company statement quoted Abdulaziz Sulaiman Al-Humaid, SABIC’s executive vice president for its metals strategic business unit, as saying the reduction would contribute to the stability of the domestic market, as indicators pointed to rising demand for steel now and in the future.
The reduction also keeps pace with developments in regional and global markets, he added. The statement did not specify a level for SABIC’s new rebar price, but before the cut, the price of rebar in Riyadh was 2,200 riyals per ton, implying the cut was about 10 percent, an industry source said. Rebar, or reinforcing steel, is commonly used in construction.
Global steel prices are at their lowest levels in about a decade, according to an index compiled by London-based consultancy CRU. Saudi Iron and Steel Co. (Hadeed), SABIC’s metals affiliate, is the largest steel producer in the kingdom.
Al-Humaid told Reuters last year that Hadeed planned to add 4 million tons of annual steel output capacity to reach 10 million tons by 2025.
But earlier this year, SABIC’s then-chief executive Mohamed Al-Mady said falling steel prices meant SABIC would “think twice” about proposals for two new domestic steel plants in Rabigh and Jubail that were expected to cost $4.26 billion.


US poised to end waivers for 5 countries importing Iranian oil

Updated 29 min 18 sec ago
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US poised to end waivers for 5 countries importing Iranian oil

  • Japan, South Korea, Turkey, China and India were exempted from sanctions until May 2
  • Since November, Italy, Greece and Taiwan have stopped importing oil from Iran

WASHINGTON: The Trump administration is poised to tell five nations, including allies Japan, South Korea and Turkey, that they will no longer be exempt from US sanctions if they continue to import oil from Iran, officials said Sunday.
Secretary of State Mike Pompeo plans to announce on Monday that the administration will not renew sanctions waivers for the five countries when they expire on May 2, three US officials said. The others are China and India.
It was not immediately clear if any of the five would be given additional time to wind down their purchases or if they would be subject to US sanctions on May 3 if they do not immediately halt imports of Iranian oil.
The officials were not authorized to discuss the matter publicly and spoke on condition of anonymity ahead of Pompeo’s announcement.
The decision not to extend the waivers, which was first reported by The Washington Post, was finalized on Friday by President Donald Trump, according to the officials. They said it is intended to further ramp up pressure on Iran by strangling the revenue it gets from oil exports.
The administration granted eight oil sanctions waivers when it re-imposed sanctions on Iran after Trump pulled the US out of the landmark 2015 nuclear deal. They were granted in part to give those countries more time to find alternate energy sources but also to prevent a shock to global oil markets from the sudden removal of Iranian crude.
US officials now say they do not expect any significant reduction in the supply of oil given production increases by other countries, including the US itself and Saudi Arabia.
Since November, three of the eight — Italy, Greece and Taiwan — have stopped importing oil from Iran. The other five, however, have not, and have lobbied for their waivers to be extended.
NATO ally Turkey has made perhaps the most public case for an extension, with senior officials telling their US counterparts that Iranian oil is critical to meeting their country’s energy needs. They have also made the case that as a neighbor of Iran, Turkey cannot be expected to completely close its economy to Iranian goods.