Since reports of an investigation into non-VAT trade from China emerged, the low import price levels for hot rolled coil (HRC) from China to the Gulf Cooperation Council (GCC) region have been off the table. As a result, GCC-based buyers, particularly the re-rollers which need to restock, have chosen to purchase HRC from Japan. Still, despite these bookings, most Emirati buyers still believe HRC is currently overpriced at a time when domestic demand in their market is insufficient.
Although ex-Japan HRC was not firmly offered to the GCC in previous weeks, market players state that around 45,000 mt have been booked lately at $570/mt CFR for June shipments.
In the meantime, no purchases have been reported from China, but SS400 HRC offers have increased by $10-30/mt over the past week to $560-585/mt CFR for May and June shipments.
On the other hand, Indian and South Korean suppliers are not offering to the GCC since their price expectations do not align with those of customers in the region.
“Neither we nor the majority of other Indian mills are offering to the GCC due to the anticipated price increase in the local market and the maintenance shutdown at the end of April and May,” the representative of a large Indian mill told SteelOrbis.