With the influence of developments and price decreases in the global steel markets, demand had almost ground to a halt in the Middle East flat steel markets in May and June. Given that stockists' sales were below expectations, buying activity for imported materials had also slowed down.
The buying activity of end-users, which was slow for a long time, has again started to increase as Ramadan approaches. In the Middle Eastern flat steel markets, local demand is expected to gain some momentum after Ramadan, considering that prices have bottomed out and that the slow buying activity in May and June has resulted in a slight activation of demand before Ramadan.
In Egypt, EZDK has announced its local market prices for August production, indicating no change as compared to the past month. Accordingly, the producer's hot rolled coil prices stand at the level of EGP 3,750/mt, excluding 10 percent tax. Meanwhile, in EZDK's export offers, hot rolled coil (HRC) prices remain at the level of $640-650/mt FOB. In Egypt, it is heard that local demand has started to recover.
May |
June |
July |
August |
|
HRC local |
EGP 3,910/mt |
EGP 3,910/mt |
EGP 3,750/mt |
EGP 3,750/mt |
HRC export (average) |
$780/mt |
$680/mt |
$640-650/mt |
$640-650/mt |
In Saudi Arabia, after relative silence in the months of May and June, activity in the flat steel market has gained some momentum in July and in the pre-Ramadan period. This activity has been seen as end-users started to purchase from stockists rather than stockists making imports. Meanwhile, in Saudi Arabian producer SABIC's offers for September/October shipments, HRC prices are heard to be standing at $640-650/mt, cold rolled coil (CRC) prices are at $750/mt, while hot dip galvanized (HDG) of 1-2 mm thickness is at $870/mt.
Lastly, a flat steel producer in Iran is heard to have concluded a transaction for HRC to the export market at the price level of $600/mt FOB.