The GCC's import HRC market has remained subdued this week, with purchasing activity slowing in both the domestic and import segments, while offer levels have shown little change. Market sentiment has been increasingly shaped by the lack of clarity surrounding regional logistics. Shipping conditions around the Strait of Hormuz have yet to fully normalize, while concerns that disruptions linked to the situation in Yemen could also affect Saudi ports have created an additional layer of uncertainty. Together with rising energy costs and persistent difficulties along regional trade routes, these developments have strengthened expectations of further increases in freight and insurance costs. Under these circumstances, GCC buyers have remained cautious and largely refrained from taking new positions, awaiting greater clarity regarding shipping conditions and future landed costs.
“At this stage, it is very difficult to take a position. The market was already dealing with uncertainty around the Strait of Hormuz, and now there are concerns that other regional ports may also be affected. The overall situation remains highly uncertain, while a further rise in freight costs now appears highly likely,” a GCC market participant told SteelOrbis.
Chinese SS400 HRC offers for September shipment have been heard at around $480-490/mt FOB China. For cargoes of approximately 20,000-25,000 mt, freight costs are currently estimated at around $50-60/mt, bringing the corresponding indications to approximately $530-550/mt CFR GCC. Chinese offer levels have therefore remained broadly stable compared to the previous week.
Meanwhile, Indian HRC indications for September shipment have continued to be heard at around $530-540/mt FOB. Freight costs for cargoes of approximately 20,000-25,000 mt are estimated at around $45-60/mt, corresponding to approximately $575-600/mt CFR GCC. In addition, some market participants have reported hearing offers at around $565-575/mt CFR UAE, although no transaction at these levels has been confirmed.
