Higher prices for feedstock have been exerting pressure on the positions of hot dip galvanized (HDG) producers in the UAE. Accordingly, despite the ongoing insufficient demand in the domestic market, local mills have adjusted their offers upwards.
Al-Ghurair Iron and Steel, a key local mill, has recently announced its offers for 1 mm Z275 HDG coils for January shipment at $850/mt ex-works, rising by $50/mt compared to the previous round of sales. Meanwhile, HDG of the same specification produced by United Iron & Steel is officially available at $860/mt ex-works, for February shipment. “This is entirely because of raw material prices,” commented the representative of one Emirati mill. Meanwhile, offers of hot rolled coil (HRC) to the UAE have already reached $600/mt CFR.
Local stockists, in their turn, have been resisting the uptrend, citing the lingering weak demand for finished steel in the UAE and the unlikelihood of any positive changes in the nearest future.