While ex-Ukraine HRC offers to Syria have in the past week increased by $15/mt (compared to last month) to $380/mt CFR Syria, ex-Russia HRC offers to the same country have increased by $10/mt to $410/mt CFR Syria. Both offers are for June production.
Although traders' stocks in Saudi Arabia have started to shrink, end-users' stocks in this country are still at high levels. Purchasers have been delaying their activity as they fear that prices may go down further. Recently concluded deals are not aimed at building up stocks, but rather at satisfying current orders. In the local Saudi Arabian market, SABIC's price for new production HRC is at SAR 1,650/mt ($440/mt) ex-works, its CRC price level is at SAR 2,050/mt ($547/mt) ex-works and its HDG price is at SAR 2,600/mt ($693/mt) ex-works. In other words, compared to last month, the sales price levels of the producer in question have decreased by SAR 250/mt ($67/mt) for HRC, by SAR 100/mt ($27/mt) for CRC and by SAR 200/mt ($53/mt) for HDG, for serious customers and large tonnages. However, it is said that SABIC has recently been pursuing a more competitive price policy. Thus, it is observed that SABIC, which has been increasingly gaining respect for the quality of its material, is now reacting more rapidly to the competitive import offers in Saudi Arabia.
Meanwhile, whereas ex-Russia HRC offers to Saudi Arabia were at $405-410/mt CFR a month ago and declined to $390/mt two weeks ago, during the past week these offers were observed to have rebounded to $410-420/mt CFR. Also, a greater number of Southeast Asian origin offers are visible at the current time, from regions such as Taiwan, South Korea and Japan in particular. It is reported that ex-Japan Nippon Steel production HRC of 1.2 mm thickness has been offered to Saudi Arabia at $470/mt CFR , whereas ex-South Korea offers for 2 mm HRC to the same country have been at $440/mt CFR.
While import HRC offers to the UAE are currently at $400-430/mt CFR UAE, since there will likely be a contraction of demand in summer and a decrease in demand at Ramadan, stockists and buyers in the Middle East are trying to get through the period leading up to Ramadan without taking too many risks. The fourth quarter of the year, however, is expected to bring a recovery with the return of demand.