The GCC hot rolled coil market has remained relatively quiet over the past week, as buyers have continued to resist higher import offer levels despite ongoing upward pressure from major supplying countries. While expectations for demand in the region are still observed following the holiday period, purchasing activity has been limited by the growing gap between buyers’ targets and suppliers’ price expectations. Rising production costs and firmer export sentiment in both China and India have encouraged mills to seek higher prices for July shipment material, though GCC buyers have largely maintained a cautious approach and have continued to look for lower workable levels.
In the UAE market, Chinese suppliers increased their July shipment HRC offers by around $5/mt week on week to $585-600/mt CFR. For Saudi Arabia, Chinese origin offers for July shipment have also moved up slightly, to $615-625/mt CFR Jeddah.
Market sources indicate that increasing logistics costs have contributed to the firmer sentiments regarding offers. According to a regional trader, the redirection of shipments to western Saudi ports, mainly Jeddah as well as Yanbu, Jazan and Rabigh, has significantly increased inland transportation costs, adding approximately $40-75/mt to overall import expenses. In addition, war-related surcharges remain subject to further calculations, creating additional uncertainty for market participants.
Meanwhile, Indian suppliers have started to show greater resistance to lower-priced sales due to rising production and export-related costs. Official July shipment HRC offers from India have been heard at $550-560/mt FOB this week. Based on current freight levels, equivalent CFR UAE values would be expected at around $620-630/mt. However, some market sources have continued to report offers from certain Indian suppliers at approximately $600-610/mt CFR UAE.
