The uncertainty as regards the further trend of steel and raw material prices worldwide has caused Emirati buyers of hot rolled coil (HRC) to book material with particular caution and in lots as small as possible. Nevertheless, during the past two weeks at least 75,000 mt of ex-India coils were booked in total to this destination, according to market sources. “There is no interest in ex-China HRC in the region at the moment, with buyers largely aiming to avoid confusion with export taxes. At this time, everyone is trying to buy Indian coils in smaller lots on weekly basis, expecting prices to drop further,” a key UAE-based customer stated.
Accordingly, about 75,000 mt of ex-India HRC in total have been booked recently to the GCC region at $1,038-1,060/mt CFR, with most volumes sold to the UAE at $1,038-1,050/mt CFR. As SteelOrbis reported earlier, at the end of May small ex-India HRC lots were traded at $1,100 mt CFR. It is noteworthy that both sellers and buyers have recently been concerned about the challenges arising in the global freight market. “It is a big hassle nowadays. Freight has become too expensive, almost double in comparison to the normal rates for bulk cargoes and about 300 percent higher for containers,” a major India-based exporter told. A source reported that the freight price for break bulk cargoes from India to the UAE is in the range of $50-55/mt at the moment. The limited container availability is said to be another challenge for market players. “Container shipment is a big issue now because of the scarcity of containers,” another Indian exporter told.