The GCC hot rolled coil market has shown improved activity this week, supported by a gradual increase in buying interest and a growing willingness among suppliers to conclude business at more competitive levels. While buyers have continued to target lower prices, stronger purchasing interest compared to previous weeks has resulted in fresh bookings being reported to the UAE market. At the same time, weaker domestic demand in key exporting countries, particularly China and India, has encouraged suppliers to focus more actively on export markets, leading to slightly softer offer levels and a more flexible approach in negotiations.
In the UAE market, a major Indian supplier is reported to have sold around 90,000 mt of HRC at approximately $600/mt CFR UAE towards the end of last week. While official Indian July shipment offers are still heard at $550-560/mt FOB, which would translate to noticeably higher CFR levels based on prevailing freight rates of around $70-75/mt, suppliers have increasingly been willing to conclude business at lower prices in order to stimulate export sales.
Meanwhile, no fresh deals involving Chinese origin HRC have been reported so far this week. However, offer levels to the UAE market have softened to $580-590/mt CFR from $585-600/mt CFR heard last week. In addition, some market sources have reported lower price indications at around $570-575/mt CFR for potential transactions, suggesting that suppliers have adopted a more competitive approach in export markets as they seek to stimulate overseas sales.
