As expected, the appearance of positive sentiments in the global steel market has made hot rolled coil (HRC) customers in the GCC region more determined to refresh their stocks now in order to secure themselves from possible higher prices in the future. Nevertheless, some market sources have remained skeptical with regard to the apparent rise in global steel prices, with economic fundamentals remaining very weak.
Lately, ex-India HRC prices have appealed to customers in the GCC. Consequently, around 78,000 mt of ex-India boron-added HRC have been booked at $710-740/mt CFR, with a major part of the volume destined for the Emirati market. The price levels above correspond to the prices targeted by the major Indian suppliers in this region in recent weeks. “Many believed that a bottom was already reached, while others were down on inventories. That caused a slight increase in buying activity,” a major Indian exporter commented. Lower offers for ex-India HRC, namely at $680-690/mt CFR, are said to be available also, but from the sole supplier. Information about deals for ex-Russia HRC has been actively discussed in the market, though no confirmation has been received by the time of publication due to certain reasons. “People are keeping it secret as it is sanctioned at the moment. Given the current business circumstances with Russia, it is certainly not a large quantity. There are too many risks for those who sell their end products to the US or to Europe,” a market source stated. “I do not know who is a buyer of Russian material here, in the region. Nobody wants to touch “toxic” material,” a trader stated. One way or another, there is talk in the market about 30,000 mt of ex-Russia HRC, reportedly produced by MMK, being sold to the UAE, at $665-670/mt CFR.
Meanwhile, ex-China HRC offers have been heard this week at $730/mt CFR, which corresponds to the high end of the range valid a week ago. Nevertheless, some Chinese sellers have started to test market with offers close to $750/mt CFR.
In the meantime, ex-India Z275 hot dip galvanized coil (HDG) with 1 mm thickness is said to be available at $1,180/mt CFR.