Covid-19 thwarts HRC trade in UAE, prices fall

Despite the ongoing softening of import hot rolled coil (HRC) offers to the UAE, many buyers are staying on the sidelines as Covid-19-related precautions continue to roil the market. The announced two-week lockdown in Dubai as of April 4 has exerted their concerns and forced most importers to take a wait-and-see stance in anticipation of a clearer situation. “We will get a better picture in a day or two, regarding how to work under these new conditions. As of now, most offices are not working,” one of the Dubai-based HRC sellers said.
Meanwhile, ex-India HRC offers to the UAE have continued to drop as expected, falling over the past week by at least $15/mt to $410-415/mt CFR. “We booked orders during the last week of March. Taking into account the current development, it is not sure whether we will be selling now,” an Indian mill said. According to sources, around 15,000 mt of HRC were purchased at $425-430/mt CFR in the previous week. “The buying activity in the UAE vanished as Dubai went into lockdown. I think some solution will be worked out, but for now everyone is at a standstill. No trucks are allowed,” stated another Indian mill, which has decided to stop giving official offers and choosing to collect bids if demand arises.
According to sources, no firm offers from Japan have been reported yet.