Following last week’s largely stable trend, the GCC HRC market has started to see higher import offer levels, though without translating into stronger trading activity. The increase in prices is mainly attributed to Chinese suppliers returning from their holiday with firmer indications, along with persistently high freight costs. Market players report that trading activity in Saudi Arabia remains somewhat better, with some buying interest and ongoing transactions, while in the UAE the impact of regional tensions continues to weigh on transportation, limiting transactions. As a result, demand remains cautious across the region, with slower sales particularly evident in the UAE market and overall visibility still weak.
In the UAE, Chinese HRC offers for end-of-June and July shipments have increased to $580-590/mt CFR, compared to around $550/mt CFR for May-June shipments reported last week. The increase reflects FOB levels at $510-520/mt, while freight costs to the UAE remain close to $70/mt. Firmer offers have yet to translate into confirmed deals, and no transactions have been reported so far.
For Saudi Arabia, Chinese origin HRC offers for June shipment have remained largely stable at $610-615/mt CFR to Jeddah. Meanwhile, Indian suppliers are heard to be offering at $620-625/mt CFR for shipments in early-to-mid June, though these levels are still not triggering notable buying activity. While Jeddah continues to receive most offers, trading conditions are more active compared to the UAE.
On the domestic side, Hadeed is offering HRC at around $740/mt CPT for June shipment. Some trading activity is reported in Saudi Arabia, though no confirmed details have been disclosed so far.
