The continued optimism in the global steel market has pushed hot rolled coil (HRC) buyers in the GCC region to replenish their stocks in order to secure themselves from expected further hikes in the future. Nonetheless, due to ongoing low end-user demand, certain market sources remain apprehensive regarding acquisitions.
According to sources, GCC buyers last week booked 50,000 mt of ex-Japan HRC at $690/mt CFR. Later on, the suppliers decided to increase their offers to $710/mt for March shipment.
A similar trend has been observed in the offers of other countries due to favorable HRC market prospects. Indian suppliers have started to offer HRC at $720-730/mt CFR to UAE for end of March-April shipments. However, SteelOrbis has learned that certain mills are still offering at last week's lower levels of $690-705/mt CFR. In the meantime, South Korea has increased its offers to the UAE to around $745/mt for March shipments, from the earlier pricing of 710/mt CFR.
Furthermore, China is currently out of the market owing to the Lunar New Year break, though market players anticipate that ex-China HRC offers will trend upward after the holiday, which will undoubtedly have a substantial influence on all the other suppliers.