This week, some Emirati and Omani tube producers have expressed interest in restocking after seeing a softening in Chinese hot rolled coil (HRC) prices. Although trading activity has been observed, in the UAE in particular end-user demand remains low and so the majority of Emirati purchasers are cautious about restocking. Meanwhile, other suppliers, including India, Japan and South Korea are withholding HRC offers this week due to the continuing poor business levels in the GCC.
Chinese suppliers’ SS400 HRC offers to the UAE have decreased by $5-10/mt week on week to $575-585/mt CFR for August shipment. Meanwhile, even cheaper offers have been reported in the market and, accordingly, Chinese suppliers have sold some lots to the UAE and Oman at $561-570/mt CFR.
Meanwhile, even though most Indian suppliers have not offered to the GCC this week, sources say India has sold 5,000 mt of HRC to Qatar at $560/mt FOB. However, this information has not been confirmed by the time of publication.
While ex-Japan and ex-South Korea HRC offers for June shipments were at $590/mt CFR and $610-620/mt CFR last week, no offers have been heard this week, reflecting the continuing sluggishness of trade in the GCC.
