GCC buyers continue to purchase HRC, though cautiously, as import offers show a slight downward trend. The expectation of further price softening has led to slow but consistent buying over the past week. Notably, Omani buyers have shown some interest in Chinese materials, while sources indicate that UAE-based re-rollers are currently in negotiations with Japanese suppliers, with a deal likely to be concluded in the coming days. Meanwhile, growing geopolitical tensions in nearby countries are raising serious concerns among GCC buyers. The possibility of the closure of the Strait of Hormuz has been a major worry, as it could severely disrupt supply chains and lead to significantly higher prices across all market segments.
“Although some purchasing is taking place, most buyers are holding off in anticipation of further price declines. Meanwhile, the high tensions in the region, particularly the speculation surrounding the Strait of Hormuz, could spell disaster for the steel industry if it materializes,” a source told SteelOrbis.
According to reports, Omani tube makers recently purchased 12,000 mt of HRC from China at $475-480/mt CFR. Current offers from China for SS400 have slightly decreased by $5/mt, now standing at $470-480/mt CFR for July shipment.
Japanese suppliers, on the other hand, have kept their offers stable, below $500/mt CFR to GCC countries. These levels have attracted interest from UAE buyers, and deals with Emirati re-rollers are expected to be finalized shortly.
Meanwhile, Indian suppliers continue to reduce their offers slowly. However, their prices remain uncompetitive compared to other exporters. Current offers from Indian mills are at $530-535/mt CFR, down slightly from last week’s $535-540/mt CFR.
Additionally, South Korean suppliers have entered the market this week with offers in the range of $510-515/mt CFR for August shipment. However, no interest or deals have been reported so far.