Despite the ongoing slowdown in local trade over the past week, trading activity in the GCC has remained solid. As a result, Emirati and Saudi purchasers in need of stocks have chosen to favor Japanese and Chinese providers. Even though GCC buyers are active before the holiday, market participants anticipate that trade activity may slow down in the days ahead due to the impending holiday in the GCC.
According to sources, Japan lately sold 10,000-25,000 mt of HRC to Saudi Arabia and the UAE at $505/mt CFR for June shipment. In the meantime, current ex-Japan offers for June shipments have risen by $5/mt to $510/mt CFR UAE.
“Japan already concluded some deals recently and may try to increase prices as no more re-roller inquiries are heard because demand has slowed a little due to summer and the approaching Eid break,” a source told SteelOrbis
Quotes for Chinese SS400 HRC vary at $490-495/mt CFR for shipments in July, which is the same as last week. Nonetheless, Emirati re-rollers state that certain Chinese suppliers continue to provide discounted HRC prices at about $485/mt CFR.
At the end of the previous week, ex-China had sold a few lots to the UAE for A36 grade HRC at $508/mt CFR.
Indian suppliers, meanwhile, are still offering at $540-550/mt CFR, stable week on week, but with no sales done due to the higher prices.