Although by the middle of April India-based hot rolled coil (HRC) suppliers have significantly decreased their offer prices, aiming to secure orders, new offers have remained out of the range of buying interest for most customers in the UAE. The main reason is the availability of lower-priced offers from alternative suppliers. Besides Chinese exporters, Japanese and Taiwanese HRC suppliers have been in active negotiations with Emirati re-rollers this week, with some of them succeeding in concluding sales. Accordingly, around 25,000-30,000 mt of ex-Japan HRC in total have been reportedly traded to the UAE this week at $1,000-1,040/mt CFR. Though one reliable source has mentioned that a Japan-based mill has apparently accepted a much lower price for a cargo of 25,000 mt of HRC, at $980/mt CFR. Meanwhile, ex-Taiwan HRC has been available at $1,000 mt CFR and slightly below.
In the meantime, ex-China offers for SAE1006 HRC are mostly at $960-980/mt CFR compared to $960-1,020/mt CFR a week ago. Given the readiness of suppliers to give discounts, Emirati customers are resisting booking material above $960-965/mt CFR. Nevertheless, some suppliers have continued to target $1,000 mt CFR.
In their turn, India-based HRC suppliers have decreased their offers to $1,020-1,060/mt CFR, compared to $1,100-1,150/mt CFR at the beginning of April. “Indian mills are trying their luck, having substantially moved down from their earlier sought prices, though with no solid success so far,” an official at an Indian mill stated. One deal for 10,000 mt of ex-India HRC has been reported at $1,000/mt CFR.