Due to the strong demand in the Saudi Arabian flat steel market, local flats producer Hadeed has increased its prices for November production, as we have mentioned in our price reports. While Hadeed's HRC price is currently at over $600/mt ex-works, it is thought that the producer may not give offers for exports if demand for its November production material in the local market proves to be strong. Since the steelmaker in question does not produce 1.2 mm material, local demand for this material is mostly met by imports. Last week we reported ex-Thailand HRC deals to Saudi Arabia at around $690/mt CFR and we also reported that ex-Thailand offers had increased to around $700/mt CFR Saudi Arabia. This week ex-Thailand 1.2 mm HRC offers for late September and ex-Egypt offers for the same material for December have been at around $700/mt Saudi Arabia. Additionally, this week some deals for 1.2 mm HRC to Saudi Arabia at $700/mt CFR have been heard.
Meanwhile, Egyptian producer EZDK is offering HRC at $600/mt FOB (up from its previous level of $580/mt) for December shipments.
Another North African producer, LISCO (Libyan Iron and Steel Company), is offering HRC at $525/mt FOB for September, and it is heard that the producer has sold material at this price level to the UAE.
In Iran, Mobarakeh has sold HRC to the Middle East at $525/mt FOB. Flat steel prices are registering an uptrend in the local Iranian market.
Although flat steel demand in the UAE is at weaker levels compared to other Middle Eastern markets, demand in this country is currently more active compared to the situation at the start of the year. Apart from HDG offers to the UAE from India, no flat steel offers have been heard recently from India, mainly since Indian producers have turned their attention to their local market which is strong at the moment. There are some HRC offers to the UAE from Ukraine at $495/mt FOB for prompt shipment. It is also heard that buyers in the UAE are giving firm bids to Russian producers at $570-580/mt CFR.
Meanwhile, re-exported materials of different origins have started to be offered to the UAE from Vietnam at the price level of $660/mt CFR UAE for 1.2-1.5 mm HRC.
Flat steel price levels in the Middle East are increasing for the time being as the order books of Middle Eastern producers are filling up and also due to the price uptrend in raw materials in general.