Following the previous absence of hot rolled coil (HRC) offers from Japan in the UAE market, Japanese suppliers have returned and have managed to attract some attention from Emirati buyers. However, although some deals have been closed, most customers are refraining from purchases due to insufficient demand for flats in the local market. In addition, stock levels are at optimal levels, which gives importers some room before making their decisions.
“Unfortunately, demand remains poor and, with the start of the summer season and the extreme heat, business will decline much further,” a UAE re-roller told SteelOrbis.
According to reports, this week Japan sold around 10,000 mt for June shipment at $580-590/mt CFR to the UAE, while current Japanese offers are at $590-595/mt, up $10-15/mt from the previous offers.
Meanwhile, Chinese suppliers, encouraged by the positive outlook on prices, have decided to increase their offers for SS400 to $580-590/mt CFR, up from $575-585/mt CFR, for August shipment.
Furthermore, despite most Indian suppliers deciding not to provide HRC offers, certain Indian mills continue to offer to the UAE at $600-620/mt CFR. However, according to market players’ reports, some Indian suppliers are offering lower levels at roughly $590/mt CFR to attract customers’ attention.
