Trade in the GCC's import HRC market has remained slow this week, as the seasonal summer slowdown and continued uncertainty surrounding regional tensions have kept buyers in a wait-and-see position. While suppliers have largely maintained their FOB offer levels unchanged, ongoing difficulties along key trade routes have pushed freight rates higher as expected, resulting in a noticeable increase in CFR-based prices. Since the latest delivered indications have risen sharply compared to last week, GCC buyers have largely suspended fresh purchases and have preferred to wait for freight rates and regional shipping conditions to become clearer.
“Demand is very slow at the moment. Suppliers have mostly kept their FOB prices stable, but freight rates have increased as expected, pushing CFR prices much higher. We are not booking anything for now and are waiting to see how the situation develops. At present, Fujairah and Sohar are the main active ports for UAE purchases,” a UAE-based re-roller told SteelOrbis.
Chinese SS400 HRC offers for September shipment, which were heard at around $480-490/mt FOB China last week, have moved to approximately $490-500/mt FOB this week. Chinese suppliers are now trying to keep their offers at no less than $490/mt FOB, while some have been quoting at the upper end of the range or even slightly higher. Meanwhile, freight costs for cargoes of approximately 20,000-25,000 mt have increased sharply to around $70-80/mt, compared to $50-60/mt last week, bringing the corresponding indications to approximately $560-580/mt CFR GCC.
Indian HRC indications for September shipment have remained at around $530-540/mt FOB, unchanged from the previous week. Freight costs for cargoes of approximately 20,000-25,000 mt have been estimated at around $50-60/mt, compared to $45-60/mt last week, bringing the corresponding indications to approximately $580-600/mt CFR GCC. Buying interest has remained limited at these levels, as buyers have continued to wait for freight rates and CFR prices to return to more workable levels.
