Ahead of the New Year, the international steel markets have gained significant upward momentum and this has also affected the Middle Eastern and North African flat steel markets. Beginning from the second week of December, flat steel price offers to the Middle East and North Africa, particularly from Russia and the Far East, have been on a rising trend.
In recent weeks, 1.2 mm hot rolled coil (HRC) offers from Japan and South Africa to the Middle Eastern markets stand in the price range of $690-720/mt, while some transactions are reported to have been concluded at this level. Meanwhile, Chinese HRC offers to the Middle East are at $700-710/mt CFR. The Russian market, which was offering HRC to the Middle East at $690/mt CFR, is not currently providing any offers to the region.
SteelOrbis has learned that the Saudi Arabian steelmaker Hadeed has announced its January rolling prices for the domestic market. Accordingly, the producer's hot rolled coil (HRC) base price is standing at $740/mt, its cold rolled coil (CRC) base price is at $820/mt, while its hot dip galvanized (HDG) base price stands at the level of $910/mt. The producer is expected to announce a price increase for February production.
Egyptian steelmaker EZDK has commenced planned maintenance works and thus it is not giving any export offers.
Middle Eastern flat steel buyers predict that flat steel offers for steelmakers' February production will be higher as compared to current levels.