Given the ongoing slowness in the local market, Emirati buyers are still hesitating to restock, resulting in a week of trading silence. Although there have been notable drops in HRC import prices over the past week, particularly from China, which runs counter to the rebound in China's futures prices, no deals have been reached. However, according to market players, Chinese suppliers are open for price negotiations, and so it is likely that some UAE buyers who need stocks will conclude some deals in the coming weeks.
“China futures have rebounded, but the spot market remains uncertain. The reason for the rapid fall is that the previous prices were only offer levels. No deals have been completed since buyers are still delaying purchase decisions, but mills are keen to book so they send the initial offer at any price but are fully prepared to negotiate,” a market source told SteelOrbis
Ex-China SS400 offers to the UAE have been reduced to $480-490/mt CFR for October shipments, down from $510-520/mt CFR earlier. However, according to rumors, a few Chinese traders have made offers to the UAE at around $500/mt CFR, which is difficult given the present market trend.
Similar trends have been observed from Japanese suppliers, who have reduced offers by $30/mt to $530/mt CFR for end-of-September shipment, but, according to sources, Emirati customers have not shown much interest, due to Chinese suppliers' aggressive offers.
Meanwhile, Indian and South Korean suppliers are still not giving HRC offers and are focusing on their domestic markets, citing the lack of improvement in trading activity in the GCC.
