This week, GCC-based customers have started to replenish their supplies in line with their needs, resulting in some decent booking volumes of ex-China HRC to the GCC region. Dome other buyers, particularly in the UAE market, remain reluctant about restocking considering the current weak end-user demand, while most of them foresee a more optimistic outlook once the summer holidays are over and business activity resumes.
“Ex-China offers are at favorable levels, but currently the domestic demand still remains poor,” a trader said to SteelOrbis.
As a result, Chinese HRC offers have remained at the same levels at $570-585/mt CFR to UAE, and in recent days, Emirati purchasers have booked at least 20,000 mt of ex-China HRC at $570/mt CFR. Meanwhile, last week there were some reported sales for 20,000 mt for mid-August at $585/mt CFR from China to UAE, and further quantities for shipping in October were acquired by other purchasers at $580/mt CFR. On top of that, SteelOrbis has learned that Oman bought about 5,000 mt of HRC at $580-585/mt CFR, while Saudi Arabia purchased up to 10,000 mt at $575-580/mt CFR.
On the other hand, Indian and South Korean mills have maintained their attitude of holding offers from the UAE market since current import levels are too low compared to both suppliers' planned offer levels, as well as ongoing improved business activities in their local market.