The Middle Eastern hot rolled coil (HRC) markets have continued to trend sideways. While there has not been any significant improvement in the transaction situation, HRC import offers given to the region have increased.
In the UAE, demand for HRC has remained slow, while transactions have not showed any improvement. HRC import offers to the UAE are at about $725-750/mt CFR. While the latest HRC offers from China to the UAE at $690-700/mt FOB are expected to increase in the coming days, no new offer has been heard so far from China to the UAE.
HRC offers given by Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) to the Middle East and North Africa have lately increased. MMK's HRC offers, which were at $690/mt FOB last month, have increased to $700-710/mt FOB for September production. While it is yet to be seen if the increased offers will be able to attract buyers, there has not been any transaction heard yet at this price level.
Egyptian steel producer EZDK, which announced its domestic HRC price last week at EGP 4,450/mt ($747/mt), has not changed its HRC export offers at $730/mt FOB.
While Ramadan is still causing the Middle Eastern and North African markets to remain silent, it is expected that transactions will accelerate for products to be delivered after Ramadan.