Activity in the GCC’s import HRC market has remained slow during the past week, with buyers showing limited interest in fresh purchases despite slightly softer indications from Asian suppliers. Some buying interest was heard toward the end of last week, but overall activity has remained limited, as GCC buyers have continued to seek lower prices and remained cautious about new bookings. Although traffic through the Strait of Hormuz has been open for some time, logistics conditions have yet to fully normalize, while freight and insurance costs remain elevated. In this environment, the upper ends of Asian offer ranges are broadly unchanged, while some softening has been seen at the lower ends, particularly for serious buyers and larger tonnages.
In this overall context, Chinese SS400 HRC offers for end-of-August and September shipments have been heard at around $480-500/mt FOB China, compared to $490-500/mt FOB last week. With freight costs estimated at around $50-60/mt, the corresponding levels have been assessed at approximately $530-560/mt CFR GCC. While the upper end of the range has remained unchanged, the lower end has softened slightly week on week. Nevertheless, no fresh Chinese booking has been reported.
Meanwhile, as regards imports of Indian HRC, the previously mentioned sale of around 20,000 mt to the GCC at $530-535/mt FOB has still not been confirmed. Although Indian mills have continued to indicate offers at around $540-545/mt FOB, levels of $530-535/mt FOB have increasingly been discussed for serious buyers and larger tonnages. With freight costs estimated at around $45-60/mt, the corresponding CFR indications have been assessed at approximately $575-605/mt CFR GCC for end-of-August shipment, compared to $585-605/mt CFR GCC last week.
In addition, Japanese HRC has also been discussed in the market, although no fresh offers have been reported so far. Before the regional shipping disruptions, Japanese material had been offered at around $620-630/mt CFR UAE, while current market estimates have pointed to possible levels of around $600-610/mt CFR. However, logistics-related challenges, elevated freight and insurance costs, and the remaining trade uncertainties have continued to keep Japanese suppliers away from the GCC market.
