Due to the weak demand in the North African and Middle Eastern flats markets where traders' sales to the local markets are below expectation, traders continue to hesitate to conclude new purchases. Although there are also offers for prompt shipments, buyers show no interest in them.
Iranian producer Mobarakeh Steel has held a tender for its August production 3-16 mm HRC. The producer, which collected bids until June 22, has started to return to orders as of today, June 23, at the level of €496/mt FOB. Meanwhile, no information is available concerning the tonnage Mobarakeh has allocated for sale.
Egyptian mill EZDK is heard to be still offering for August production, but it has not found any buyers at its current offer levels. EZDK's HRC offers to the export markets, excepting Saudi Arabia, are reported to be standing at $670/mt FOB.
In Saudi Arabia, local producer SABIC is awaiting firm bids for its August and September production, with its HRC prices expected to be in the range of around $620-630/mt. Traders' previous position offers for 1.2 mm HRC from both Egypt and Taiwan are heard to be standing at levels of $720-750/mt FOB.
Flats buyers in the Middle East and North Africa are likely to stay away from the market until they see a positive improvement in the market.