The GCC’s import HRC market has remained under downward pressure this week since aggressive Chinese offers have continued to pull buyers’ price ideas lower, while Indian traders are also trying to follow the same trend. GCC buyers are still showing some interest in new bookings, but slow domestic demand and the summer slowdown are keeping them cautious. As a result, buyers are pushing for lower levels, while the gap between quoted prices and workable levels has widened. No fresh deal has been clearly confirmed this week, but market sources say lower levels may pave the way for new bookings in the coming days.
As regards Chinese prices, SS400 HRC offers for end-of-August and September shipments are now heard at around $540-550/mt CFR GCC, down from last week’s $560-570/mt CFR Saudi Arabia and $580-585/mt CFR UAE levels. Some sources still mention higher indications at around $570-585/mt CFR, but these levels are generally considered difficult to achieve in the current market.
Ex-India traders’ indications are heard at around $525-530/mt FOB, equivalent to around $575-580/mt CFR UAE for end-of-August and September shipments, down from last week’s workable level of around $585/mt CFR UAE. However, Indian mills are still mostly heard at around $540-550/mt FOB, corresponding to around $590-600/mt CFR UAE, showing a clear difference between the positions of traders and mills.
For Saudi Arabia, Indian HRC offers to Jeddah port are still being mentioned at around $620-630/mt CFR, although market participants consider these levels high compared with the more aggressive indications heard in the UAE and from traders. Sources also note that deals were already heard last week at around $580/mt CFR UAE, suggesting that actual transaction levels remain below some of the prices still being quoted in the market.
