While exporters remain hopeful for a recovery of the hot rolled coil (HRC) market, UAE customers continue to face very low end-user demand and diminished business activity, causing them to postpone bookings. On top of that, delaying construction project phases and adverse weather conditions have contributed further to the weakness of the market. As a result, the majority of HRC suppliers have decided to keep offers stable for the UAE, as the bleak mood in the domestic market persists.
Currently, ex-China offers for SS400 HRC are unchanged week on week at $590-600/mt CFR for September shipments. However, according to market participants, because of a lack of interest from Emirati customers, several mills have attempted to provide discounts and have offered at around $580/mt CFR to the UAE.
In the meantime, for the first time in a while South Korea has offered to the UAE, though at the higher level of $650/mt CFR for September shipment. However, this level is now quite high for the Emirates. On the other hand, Indian exporters have stayed mute on their offers since the demand from the UAE has remained weak.
Furthermore, according to reports, Saudi Arabian flat producer SABIC is offering HRC at $610/mt CPT.