Following the declines in ex-China HRC offers caused by fluctuating futures prices in China, GCC buyers in need of stocks have decided to purchase some Chinese lots at reduced prices. In the meantime, although Japanese and South Korean suppliers remain mute on offers, Indian suppliers who have returned to the market continue to offer HRC to the GCC, but with no success in closing deals. Market participants claim that high import offers for HRC, particularly from India, have failed to gain acceptance as local demand fails to support trading activities.
According to sources, GCC buyers purchased 45,000 mt of HRC from China at $555/mt CFR, while China is presently offering SS400 to the UAE at $550-570/mt CFR, down from $580-600/mt CFR last week. However, some suppliers are trying to offer higher prices of $580/mt CFR, but currently those levels are unworkable.
On the other hand, Indian suppliers have been more active, with their current offers at roughly $570-580/mt CFR to the GCC, compared to $540-550/mt FOB last week.
Nonetheless, Japanese and South Korean suppliers remain on hold and are not actively participating in the GCC market, but only monitoring the overall market situation.
