This week, market conditions have remained largely negative, as the ongoing war continues to weigh on sentiments, while persistent logistical challenges further disrupt trade flows. As a result, no fresh offers or deals have been heard, and overall activity has remained extremely limited. Market participants indicate that most GCC countries are still trying to establish safe and workable shipping routes, while some limited alternatives have started to emerge, mainly via Oman and Saudi Arabia, though these routes are currently being used primarily for essential shipments. Although some offers have been heard for Saudi Arabian ports over the past week, these have not yet been confirmed, as the situation remains fragile and uncertain.
“There are still no firm offers in the market, though some rumors have started to circulate. Trade routes remain uncertain, and freight costs are currently being reflected as surcharges on existing contracts, depending on the shipping line. As of last week, surcharges were reported at around $2,000 per 20’ container, though visibility for this week remains unclear,” a major Saudi re-roller told SteelOrbis.
According to market rumors, Chinese HRC offers to Jeddah have been heard at around $580/mt CFR, reflecting ongoing efforts by suppliers to divert cargoes from eastern GCC ports to Red Sea ports amid disruptions. Russian suppliers have also been heard in the market, with HRC offers to Jeddah reported at around $505-510/mt CFR.
Meanwhile, Chinese suppliers are currently offering SS400-grade HRC at around $490-510/mt FOB, though these levels remain largely indicative.
On the other hand, Indian suppliers have reported HRC offers at around $520-530/mt FOB this week, although no fresh offers have been directed to the GCC region amid the current uncertainties.
Moreover, Japanese suppliers have largely remained on the sidelines, in line with other exporters, given the ongoing logistical constraints and unclear trade conditions.