Having waited quite a long time for the reversal of the price trend, the Emirati buyers of hot rolled coil (HRC) have failed to see lower levels and ultimately, have been obliged to accept high numbers for their feedstock.
Accordingly, SteelOrbis has learned of the most recent ex-India HRC bookings to the UAE for a total volume of about 30,000 mt at $985-990/mt CFR Abu Dhabi, for June shipment. Following the recent deals, the supplier in question adjusted its HRC offers to the UAE market upwards by at least $5-10/mt, while the second major India-based supplier is still ready to sell at the above-mentioned level and is currently negotiating for a shipment by sea vessel in July. “There is a considerable shortage created in the UAE because of a long-lasting absence of bookings of fresh material. Hence, people are bound to return to bookings even at high prices,” an Emirati flats supplier commented with regard to the current situation. It is noteworthy that within the past month ex-India HRC prices to the Emirati market have risen by more than $150/mt.