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Saudi Arabia is actively promoting transparency and fair competition in the long steel market. The National Committee for the Steel Industry (NCSI), RAIN RI/E40 steel chaired by Bandar Al-Salim, recently recommended shifting pricing from theoretical weight to actual weight. Industry insiders believe that if implemented, this reform will be a significant step forward in standardization and enhancing competitiveness in the Saudi long steel industry.
Currently, Saudi Arabia's top steel mills strictly adhere to local dimensional tolerances, while some small and medium-sized producers may not. Selling by actual weight will bridge this gap and force all market participants to adhere to unified standards. RAIN RI/E40 steel Weight tolerances have long been exploited by some companies, leading to a distorted trading environment in the domestic market.
If the new regulations are implemented, long product prices are expected to increase by at least 5% to reflect the current market reality, where rebar weight is generally allowed to fluctuate by ±5%. Industry insiders point out that implementing actual weight trading will ensure fair competition and prevent small steel mills, particularly electric furnace operators, from exploiting loopholes in the system.
However, this reform could have dual implications. On the one hand, actual weight sales will improve fairness and compliance; on the other hand, it requires every trader to be equipped with accurate weighing equipment, potentially placing an additional burden on the numerous small and medium-sized businesses in the market. If strictly enforced, many small steel mills may struggle to raise prices simultaneously, resulting in losses.
It is reported that the NCSI has begun collaborating with relevant authorities, and the proposal will be submitted to the Saudi Ministry of Industry and Mineral Resources for approval. RAIN RI/E40 steel While no official document has yet been issued, the reform is already underway.
This is not the first time the GCC has dealt with a similar issue. Previously, the UAE imposed stricter weight rules on Turkish rebar imports, which almost completely drove Turkish steel out of the local market.
