Flat steel demand shows some improvement in S. Arabia and Tunisia

Egyptian steel producer EZDK is still maintaining its hot rolled coil (HRC) export offers at the base price level of $670/mt FOB. SteelOrbis has learnt that, particularly in Saudi Arabia, these offers have been accepted by local market players. Accordingly, EZDK has been increasing its sales to the Saudi market. On the other hand, export offers from the same producer for 1.2 mm hot rolled coil are in the range of $730-740/mt FOB. 1.2 mm HRC is not produced in Saudi Arabia and is mainly supplied to the country by EZDK and some producers from the Far East. This product is exempt from five percent import duty in Saudi Arabia.
 
Meanwhile, in Tunisia, although demand for flat steel is at better levels compared to before the New Year holiday, the anticipated levels of activity have still not been witnessed in the market. With Russian producer Magnitogorsk Iron and Steel Works (MMK) cutting its offer price by $10/mt as compared to the previous week, its current export offers to Tunisia for HRC stand at $680/mt CFR, while its cold rolled coil (CRC) offers are at $780/mt CFR. It is expected that these offers will gain acceptance in the Tunisian flat steel market. On the other hand, Ukrainian offers to the Tunisian markets stand at $650/mt CFR for HRC and at $750/mt CFR for CRC. It is expected that European producers will also make new offers to the Tunisian market in the coming weeks.