Following the price hike attempts of Chinese suppliers, GCC buyers in need of stocks have continued to resist higher prices but have still purchased some lots toward the end of the past week, though at lower price levels. According to market players, although the overall situation in the demand segment and ongoing projects have been going well, local demand has remained relatively slow, which has led buyers to be more cautious about accepting higher price levels. As a result, while this week China has begun to show some signs of a slight softening, Emirati and Saudi buyers who had recently purchased some lots have remained active in importing, and sources indicate that they are expected to conclude additional deals in the coming weeks.
Reports indicate that by the end of last week Chinese suppliers sold approximately 30,000 mt of SS400 grade HRC at $490/mt CFR to Saudi Arabia. Meanwhile, offers from China this week have settled at $490-515/mt CFR, down from $500-525/mt CFR in the previous week, for December shipments. While major mills have been trying to maintain offers at around $505-515/mt CFR, non-VAT traders have been quoting much lower levels, at around $485-495/mt CFR.
Another deal was heard from Japan, where two cargoes totaling about 50,000 mt of HRC sold at around $490/mt CFR toward the end of last week. Current offers from Japanese suppliers are standing near $500/mt CFR for December shipment. Similarly, Taiwanese suppliers sold roughly 25,000 mt to the UAE at $495/mt CFR for December-January shipment, with current offers remaining at the same levels.
On the other hand, Indian suppliers have not shown any significant movement, either in prices or in concluding new deals, resulting in stability of offers at $515-525/mt CFR. Even after considering the lowest available levels, overall import offers remain significantly below Indian prices, which has made it increasingly difficult for GCC buyers to accept Indian offers.
