(MENAFN - Arab News) The local iron market has been revived after its temporary stagnation which resulted from the correction period and the subsequent delays of some projects.
According to workers in the sector, demand has recovered to its natural levels because of the huge demand of government projects that monopolizes 70 percent of the sector, while the private sector has only 30 percent.
Optimism prevailed among the iron distributors after assurances that the coming year will witness strong demand for iron in light of the mega government projects, including the expansions of the two holy mosques.
Distributors said imported iron will be exiting the local market because of the gap in prices in comparison with local iron, which does not exceed SR150 per ton. People prefer local iron because of its high quality, they pointed out.
Ayman Qsaibat, an approved iron distributor said local factories have large quantities of stored iron but distributors and merchants have normal stocks.
In the past merchants used to store iron to avoid crises and scarcity that sometimes take place in the market, but this year the market is filled with imported and local iron.
"Demand is good now, especially since there are abundant projects, however demand is light in private construction because people are affected by rumors, and are waiting for prices to go down, but the market situation is stable," said Qsaibat.
"The rate of public projects' demand for iron is 70 percent while those of the private sector reach 30 percent. Prices are stable, for instance a size 16 mm Sabik ton is sold for SR2,735, while Al-Itifaq sells a ton for SR2,700," he added.
Another iron distributor expected imported iron to leave the market soon, justifying his expectations by saying the price of the national product is very close to that of the imported iron with a difference of SR150 only, while with a difference of SR300 people prefer national product for its high quality."