Middle East awaits new ex-CIS flats offers

Friday, 08 February 2008 11:01:58 (GMT+3)   |  
       

Buyers in the Middle East are currently waiting for the new flats offers to be announced by CIS mills, at a time when flats prices are on the rise. The offers for HRC ex-Russia for the Middle East market are expected to reach $830-840/mt CFR. However, actual levels will gain clarity after the CIS mills announce their new prices. Due to the influence of the pipe industry, the most popular product in the UAE at the present time is hot rolled. Moreover, the plate market in the UAE is characterized by strength. The latest plate offer ex-Ilyich mill of Ukraine was at $900/mt CFR LO Dubai; however, now it is impossible to find offers at this level. Besides, new offers for plates are expected to increase.  

With the rise in raw material costs, Egyptian mills have also hiked their prices for HRC, CRC and HDG. For instance, hot rolled coils ex-EZDK mill of Egypt are being offered for export at a base price of $800/mt FOB for March production materials. Although they are not able to sell their products to Europe at this level for now, they may conclude sales to Saudi Arabia, which is the most important buyer of Egyptian origin HRC. With the rise in the prices of imported HRC, there is an increase seen in the offers given by Egyptian mills for both CRC and HDG. The export offer for 275 g/m² coated HDG of 0.8 mm stands at $1,015/mt FOB.

Due to the improved weather conditions in Iran compared to previous weeks, an expectation that prices will rise reigns in the local Iranian market. As of February 7, 2008, the sales price of 2-12 mm hot rolled coils ex-Mobarakeh mill of Iran stands in the local market at $850-882/mt ex-stock for prompt deliveries. With new offers from the CIS, the sales prices of imported materials in the local Iranian market will increase. Although the HRC tonnage allocated for exports is low in Iran, offers for this product are at €530/mt ($766/mt) FOB. If demand picks up in the local Iranian market, the price levels of offers for the export markets may rise.

Buyers in the Middle East, for example in Jordan, are currently on hold. Buyers in Jordan are currently waiting for the arrival of previously-booked ex-CIS materials before the expected increases are seen in ex-CIS prices. On the other hand, since demand in their local market is not as high as expected, it is still uncertain whether the new offers will be accepted in this market of not.


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