UAE buyers, still in need of stocks and aware of the upward price trend observed at the end of last week, have proceeded to purchase some HRC volumes, particularly from China and Japan. In contrast, this week, while most other suppliers have kept their offers stable, Chinese suppliers have continued to raise prices, driven by rising domestic futures prices. However, as demand remains slightly subdued primarily due to seasonal factors, Emirati buyers have not concluded any new deals and have instead opted to monitor the market before making further purchases.
According to sources, Chinese suppliers sold approximately 11,000-13,000 mt of HRC last week at $480-485/mt CFR. However, this week, offers for SS400 grade have risen by $10/mt, reaching $495-505/mt CFR for late August and September shipments. That said, non-VAT traders are still offering slightly lower prices, at around $485-490/mt CFR, to the UAE.
Another deal was heard at the end of last week from Japan, where a supplier sold 25,000 mt of HRC to UAE re-rollers at $488/mt CFR for October shipment. Official Japanese offers are slightly higher, quoted in the range of $490-500/mt CFR to the UAE.
On the other hand, Indian suppliers have continued to keep their offers stable at $480-500/mt FOB, which equates to approximately $515-535/mt CFR in the GCC region for September shipment. Since Chinese prices have risen, the gap between Chinese and Indian material is narrowing, which may gradually restore India’s competitiveness in the region in the coming weeks.
