Following the sizeable UAE booking reported last week, activity in the GCC hot rolled coil market has continued at a moderate pace, with buyers remaining focused on competitive prices while closely monitoring developments in the Strait of Hormuz. Market participants indicate that trading interest has remained present, though the current uncertainty has prevented any meaningful shift in pricing expectations. Against this backdrop, import offer levels have generally remained stable compared to the previous week, although some upward movement has been observed for certain Chinese SAE1006 offers.
“Despite the current uncertainty, inquiries continue to come into the market and activity has not stopped. The numbers currently indicated are on the lower side, while any improvement in the geopolitical situation would likely support confidence and make business easier going forward,” an Indian exporter told SteelOrbis.
In the UAE market, Chinese SS400 offers for August-September shipment are still heard at around $580-600/mt CFR, largely unchanged compared to last week. Meanwhile, Chinese SAE1006 offers have increased slightly this week and are currently heard at $535-550/mt FOB for August-September shipment. Considering prevailing freight costs of around $50-70/mt, these levels would translate to approximately $585-620/mt CFR GCC. Market sources note that lower-priced non-VAT trader offers, which had been reported in previous weeks, have not been heard in the market this week, contributing to the relatively firmer tone among Chinese suppliers.
On the other hand, Indian-origin HRC offers have remained broadly stable following the sizeable UAE booking reported last week. Market participants continue to indicate workable levels at around $600-610/mt CFR UAE for July shipment, while fresh offer indications for August shipment are expected to emerge next week.
