Activity in the GCC’s import HRC segment has largely come to a standstill this week, as ongoing uncertainty surrounding shipping routes and freight levels continues to cloud the market. With logistics disruptions persisting and freight costs still unclear, market participants have been unable to proceed with new bookings. At the same time, Chinese suppliers have temporarily stepped back from issuing offers to GCC buyers amid the uncertain shipping situation. There are also discussions regarding possible alternative logistics solutions, including overland shipments from Turkey, though logistics for such routes remain unclear at this stage. In addition, a Saudi-based re-roller stated that some shipping proposals involve rerouting cargo via Oman, with additional logistics surcharges of more than $50/mt being discussed on top of domestic transportation costs. The source added that some shipments are reportedly being partially offloaded in India or Oman, particularly at Sohar port, as market participants try to adjust to the evolving situation.
As a result, price indications in the region have remained largely unchanged. Previously, Chinese SS400 offers for April shipment were reported at $490-500/mt CFR UAE, while Chinese FOB-based prices have recently increased to around $480-490/mt. However, no new offers to GCC buyers have been heard so far.
Similarly, no new offers have been reported from Indian suppliers, whose latest indications were heard at $510-525/mt CFR UAE for March shipment. Japanese suppliers have also remained absent from the market following previous rumors of offers at around $520-525/mt CFR UAE.
Meanwhile, Russian suppliers were reported to have increased their offers to the wider MENA region to around $490-495/mt CFR, though no new offers to GCC buyers have been heard this week.
