Despite the reduced ex-China hot rolled coil (HRC) offers reported over the past week, no new deals have been heard in the UAE this week since trade activity has remained quiet as purchasers have continued to just monitor the market. The main reason Emirati purchasers are hesitating to restock is the weak domestic demand which has slowed even further due to Ramadan.
Consequently, ex-China HRC offers to the UAE have fallen by $10/mt in the past week to $550-570/mt CFR for April shipment. According to reports, while traders provide lower-end prices, larger mills continue to aim for $570/mt CFR.
In contrast, ex-India HRC offers to the UAE have remained stable at around $600-620/mt CFR over the past week. Similarly, Japanese suppliers have offered at $620-630/mt CFR for April shipment, which is the same as the week before.
However, according to Emirati market players, both ex-India and ex-Japan HRC offers remain quite higher in comparison to ex-China prices, but purchasers are not seriously considering them.
“I do not believe prices over $620-630/mt CFR are realistic and no one will buy HRC at these levels considering the declining trend and other affordable levels,” a re-roller commented to SteelOrbis.
