Flat rolled steel demand in the Middle East markets has still not recovered.
Iranian flat rolled producer Mobarakeh Steel is opening a new export tender for its June production hot rolled coil (HRC). The producer's previous export tender for its May production HRC had been concluded at $720-725/mt FOB levels. As per information SteelOrbis has obtained from the market, Mobarakeh Steel is again aiming to achieve the same levels. However, due to decreasing prices in the global flat rolled steel markets, it may be possible to see deals being concluded at around $710/mt FOB under this tender this time.
In the Egyptian domestic market, demand for flat rolled products is quite weak. Because of such weak demand, the supplies of local mill EZDK are reported to be sufficient to feed the domestic market. Therefore, there is not much interest from Egyptian buyers in import offers, as market sources indicate to SteelOrbis. The June rolling price declared by EZDK is at $775/mt FOB; however, such a price level is found to be too high, particularly by European buyers, and so no demand has been received so far. Hot rolled coil offer levels from Hadisolb in the meantime stand at $700/mt FOB.
In Saudi Arabia, hot rolled coil offers have not changed over the past week. The price offered for 1.2 mm hot rolled coils is at $850-890/mt CFR. Demand in Saudi Arabia is slow as well, and a recovery is expected to follow when a rebound is seen in global flat rolled prices.
The situation is not much different in the UAE market in terms of demand. Offers coming in from Ukraine and Russia are in the range of $700-730/mt CFR. Buyers are hesitating to book with the concern that prices may fall further. This uncertain environment is negatively influencing purchasing activities.