The ongoing fall of prices in China, in particular of export hot rolled coil (HRC) offers, has made Emirati buyers more cautious towards new HRC bookings. Though the overall uncertainty among market players as regards the future trend is only increasing, some buyers are deeply convinced that prices will gain momentum in the coming days. Nevertheless, negotiations with Chinese exporters are ongoing.
Accordingly, the most recent ex-China SAE1006 HRC offers to the UAE have been voiced at $930-960/mt CFR, falling by around $30-50/mt over the past week. “The offers from China are softening day by day, negatively affecting market sentiments and making buyers delay their procurement. Meanwhile, other suppliers are not reducing prices, even though they are under pressure,” an Emirati re-roller stated.
Aggressive offers from China have noticeably lowered the attractiveness of HRC of other origins. In particular, ex-India HRC offers which were voiced last week at $1,115-1,130/mt CFR for August shipment, are considered by most buyers in the UAE as not being workable as of now. Meanwhile, at least an ex-India lot of 7,000 mt of HRC has been heard as having been sold at $1,100/mt CFR. HRC from the regional producer Saudi Arabia-based Hadeed has been available at $1,050-1,060/mt DDP, according to sources.