This week in the UAE, despite Chinese suppliers further lowering their prices compared with the previous week, no new deals have been done with Chinese mills. Instead, UAE-based buyers who still need to replenish stocks have chosen to favor Indian suppliers, as they see them as a more reliable option at the moment. Indian mills have reduced their offers and managed to sell to UAE buyers as well as to buyers in other GCC countries, but their prices still remain higher than the more aggressive levels offered by Chinese suppliers, especially non-VAT traders. Market players explain that UAE buyers are mainly choosing Indian material because delivery is faster and more dependable. Some UAE buyers have recently faced delivery delays with previous Chinese orders, which has increased their concerns about relying on Chinese suppliers.
“Restrictions on Chinese substrate [feedstock] in various export markets, the faster transit time from India, and ongoing delays in previous Chinese shipments are influencing buyers’ decisions,” a source told SteelOrbis.
As a result, while Indian suppliers have decreased their offers to $505-515/mt CFR, down from $515-525/mt CFR in the previous week for December shipments, they have sold around 20,000 mt of HRC at $500-505/mt CFR to the UAE for the same shipment period.
Moreover, according to reports, buyers in Bahrain and Qatar have also bought some lots from India of around 15,000 mt and 20,000 mt at approximately $480/mt FOB and $470/mt FOB, which is equivalent to $510-515/mt CFR and $500-505/mt CFR for December shipment, respectively. However, this information has not been officially confirmed by the time of publication.
In contrast, Chinese suppliers have reduced their offers but have not managed to secure any deals due to ongoing concerns about shipment delays. They have quoted SS400 HRC offers at $480-495/mt CFR UAE, down from $490-515/mt CFR in the previous week, for December shipments.
Meanwhile, Japanese suppliers who sold some large lots previously have kept their prices stable over the past week and have quoted the same offers as last week at $495-500/mt CFR for December shipment. A similar stability has been seen from Taiwanese suppliers who, after selling some lots to the UAE, have kept offers at $495/mt CFR for December-January shipment.
