Given the weakening of Chinese hot rolled coil (HRC) offers due to decreases in futures prices and the latest weaker-than-expected stimulus package, Emirati buyers have postponed their import HRC purchases for the time being. In addition, UAE-based buyers decided to wait and observe market developments since the local market has not been very active, stocks are ample, and the soft trend has also affected other suppliers like those in India.
SS400 grade HRC offers from China to the UAE for December shipment are quoted at $525-535/mt CFR this week, down from $530-540/mt CFR in the previous week. Meanwhile, according to UAE-based market players, some Chinese suppliers are offering substantially lower prices for bigger tonnages, at approximately $510-515/mt CFR.
A similar softening has been observed from Indian suppliers under the influence of China, according to reports this week. Ex-India HRC offers for December shipment have been reduced to $555-560/mt CFR, from $560-570/mt CFR last week. Although there have been some declines, no deals have been done since Indian prices are still too high for Emirati purchasers in comparison to China's offers, while a few of the larger Indian mills have decided to withdraw their offers for the time being.
Japanese and South Korean suppliers, on the other hand, are still not giving offers as import HRC workable levels in the GCC have decreased significantly and customers in the region are still delaying and showing little enthusiasm for purchases.