HDG prices in UAE rise, but still with no support from demand

Prices for hot dip galvanized (HDG) coils in the Emirati market have continued to rise, following firm increase of prices for feedstock, namely for hot rolled coils (HRC). However, this uptrend still lacks demand support. “Market is struggling with a credit shortage. All projects are moving at a very slow pace amid ongoing Covid-19. Surrounding GCC markets are still closed because of virus related issues. Hence, this year is going to be difficult with a buying activity might be even slower from October onwards”, the supplier of HDG coils in the UAE commented.

Accordingly, 1 mm Z275 HDG coils produced by Al-Ghurair Iron and Steel, a key local mill, with October shipment are available at $780-800/mt ex-works, up $60-70/mt over the past two months. Meantime, HDG coils with the same specification produced by United Iron & Steel are officially available at $795/mt ex-works. According to sources, some deals have been signed at $25/mt below above-mentioned levels. “We are about to resist further increase of HRC prices, as we still haven’t converted higher costs to prices for finished goods”, another HDG producer in the UAE said. Import prices for HRC have risen by $90-95/mt since the beginning of July.

HDG coils with the same specification produced by India’s JSW are offered at $760-780/mt CFR, having increased by $80-90/mt over the same period. Ex-China HDG offers have been heard at $635/mt CFR, LC payment.