This week, Emirati purchasers, who have been seeing slow end-user demand in their local market and expect additional price decreases, have maintained a mute stance on HRC imports. While UAE buyers have remained silent, Chinese suppliers have continued to reduce HRC offer prices to the UAE due to lower trading activity and declines in futures prices. As a result of the considerable decrease in ex-China prices, Indian suppliers have also been affected and have decided to lower their offers.
“There is not much activity for imports because the market is slow and sentiments are weak, but buyers are also anticipating more corrections in raw material prices,” a re-roller told SteelOrbis.
According to reports, SS400 quotes from Chinese suppliers have dropped by $20/mt week on week to $490-500/mt CFR UAE for February shipment. However, according to sources, some Chinese traders are providing far lower offers to the UAE, at approximately $485/mt CFR.
Similar attempts at decreasing prices have been observed by Indian suppliers, who began offering at about $530-535/mt CFR this week, after offering $540-550/mt CFR for February shipment last week.
On the other hand, because of the slow trade activity in the UAE and aggressive levels from China, suppliers from South Korea and Japan are still not offering HRC to the UAE.
