No new import purchases of hot rolled coils have been recorded in the UAE this week, as buyers who previously secured significant volumes have chosen to suspend further purchases. The slowdown reflects weakening HRC futures prices in China, slight price reductions from Chinese suppliers, and discounted offers from Indian mills aimed at attracting serious buyers. However, with sufficient inventories and no immediate demand, most market participants in the UAE are maintaining a cautious, wait-and-see approach, anticipating a potential further decrease in the coming weeks.
“Customers are expecting the market to decline as Chinese market sentiment is currently weak. This week, Chinese traders appear aggressive and are ready to reduce their prices,” a UAE-based re-roller told SteelOrbis
This week, SS400 grade HRC offers from Chinese suppliers have been heard at $510-515/mt CFR, compared to $510-520/mt CFR for October deliveries last week. Meanwhile, non-VAT suppliers are attempting to push prices down to $500/mt CFR.
Indian suppliers have continued to keep offers largely stable at $530-540/mt CFR. However, sources indicate that higher levels are not being accepted by UAE buyers. As a result, some Indian suppliers have reduced their quotations, offering material at $530-535/mt CFR for October shipment.
On the other hand, Japanese suppliers have kept their offers stable at $510-520/mt CFR for October shipment, unchanged from the previous week, while no new deals have been concluded.
Similarly, South Korean and Taiwanese suppliers have not entered into fresh deals this week. Their previous offers remained at $530/mt CFR and $535/mt CFR, respectively, both for October shipment.