The recent changes in the global steel market, accompanied by the reversal of the trends of raw material and steel prices and, consequently, the mounting uncertainty among market insiders with regard to the future market prospects have made Emirati customers of hot rolled coil (HRC) even more cautious towards new bookings. Even given the reported shortage of material in the region, the major buyers have opted to delay transactions, expecting prices to come down in the coming weeks. Besides all the above, the appearance of aggressive import offers from China due to its weakened domestic market has exerted negative pressure on the main HRC suppliers.
Accordingly, following sales of a total around 25,000 mt of HRC about ten days ago at $900-910/mt CFR, India-based suppliers have attempted to increase their offers to $925-930/mt CFR. However, they have failed to meet any support from buyers. “While the domestic market in India is picking up, bids voiced by Emirati customers are out of our range of interest unless they reach $940-950/mt CFR levels,” an official at an Indian flats mill said. “Demand from end-users in the UAE has improved compared to the previous months. Moreover, there is a certain shortage of material. However, we will likely await the trend in the global market to be clear,” a representative of a UAE-based pipe mill stated.
Meanwhile, Emirati HRC customers have started to receive attractive offers of ex-China HRC lately. In particular, ex-China HRC with 3mm and above thickness for shipment in December has been available this week at $880/MT CFR from traders.