The GCC's import HRC market has effectively come to a standstill this week, as mounting shipment difficulties and sharply elevated freight costs have made new bookings increasingly difficult despite the latest declines in Chinese and Indian FOB-based offers. Limited bulk vessel availability, prolonged waiting times at ports and growing problems in securing vessel nominations have created serious uncertainty over shipment schedules, while some mills are reportedly becoming reluctant to commit to cargoes under the current conditions. With local demand also remaining slow, buyers have shown little interest in the lower FOB-based levels, as the logistical disruptions continue to keep delivered prices high and has left market participants focused more on shipment feasibility than on fresh negotiations.
“Vessel availability is limited, waiting times are long and securing nominations has become difficult. Even though FOB prices are declining, CFR levels remain too high,” a UAE-based market participant told SteelOrbis.
Chinese SS400 HRC offers for September shipment have declined to around $480-490/mt FOB, compared to $490-500/mt last week. However, with freight rising to around $75-85/mt from $70-80/mt, the corresponding price stands at approximately $555-575/mt CFR GCC, versus $560-580/mt last week.
Indian HRC offers for September shipment have also softened to around $515-520/mt FOB, down from $530-540/mt last week. With freight now at around $75-85/mt, compared to $50-60/mt previously, delivered indications are estimated at $590-605/mt CFR GCC, versus $580-600/mt last week. However, some UAE-based market participants are still hearing Indian offers at $530-540/mt FOB, indicating that certain suppliers may be trying to maintain their previous levels amid the current shipment and logistics difficulties.
