The GCC import HRC market has remained mostly quiet this week, with prices broadly stable despite continued aggressive indications from Asia and some buying interest in the market. Although Chinese and Indian suppliers are still seen to be willing to discuss discounts in order to secure sales, no clear fresh booking has been confirmed so far, while some Indian deals mentioned during the week were later described by sources as rumors or unconfirmed low-level negotiations. Market participants say demand in the GCC is still slow due to the summer season, though overall business activity is continuing at a normal pace. In the UAE in particular, buyers are staying cautious not only because of weak seasonal demand and expectations of lower prices, but also due to still-high freight and insurance costs linked to the Strait of Hormuz situation, with many customers waiting for shipping conditions to normalize before returning to the market more actively.
As regards Chinese material, SS400 HRC offers for August and September shipments are still heard at around $490-500/mt FOB China. With freight costs currently estimated at around $50-60/mt, the corresponding CFR level is assessed at around $540-560/mt CFR GCC. These levels have remained broadly unchanged week on week, though they are still considered aggressive compared with other origins. Despite this, buyers are mostly in no hurry to book, as they expect either lower prices or some normalization in freight and insurance costs.
“In the UAE, the market is full of challenges. HRC prices are around $500/mt FOB, but shipping and insurance costs are too high. Customers are expecting the issue to be resolved soon and prices to normalize. Not many bookings are happening due to the summer season and lower price expectations,” a UAE-based re-roller told SteelOrbis.
For Indian HRC, market sources say prices to the Gulf remain under pressure, mainly because of strong Chinese competition and excess availability in the Indian domestic market. Some discounted Indian deals and negotiations have been mentioned this week, including one rumored sale to the UAE at around $510-520/mt FOB India for about 20,000 mt and another negotiation to the Gulf at around $490-500/mt FOB net of discount for around 30,000 mt. However, these levels have not been confirmed, while several sources said they appear too low compared with current official offer levels.
At present, Indian HRC offers for August shipments to the GCC are mostly heard at around $540-545/mt FOB. With freight costs estimated at about $45-60/mt, this corresponds to approximately $585-605/mt CFR GCC. At the same time, some market participants believe levels close to $535/mt FOB may still be possible for serious buyers, as Indian suppliers remain willing to negotiate and discounts are still on the table in order to secure sales.
