HRC buyers cautious in UAE after closing deals from Asia

Import hot rolled coils (HRC) prices in the UAE are still facing downward pressure. End-user consumption is gradually recovering, though it still remains insufficient.

By the beginning of the current week, some Indian HRC suppliers under pressure from low bids started to offer at $430/mt CFR, down $10-15/mt compared to two weeks ago. Offers at $440-445/mt CFR still exist in the UAE market, but with no interest from the buyers’ side. Last week, a GCC-based buyer booked a cargo of 15,000-20,000 mt of ex-India HRC at $440/mt CFR, SteelOrbis has learned.

Ex-Japan HRC offers have remained unchanged since the end of June and have been coming mostly at $450/mt CFR. A confirmed deal for Japanese HRC was done at $440/mt CFR last week. Though negotiations at $425/mt CFR have been mentioned in the market, this level has been not confirmed officially and is regarded by sellers as not workable.

Offers from the regional producer Hadeed are reportedly in line with the general level of offers from other suppliers. This is not at all in line with the traditional situation and provides evidence of subdued demand, a few sources note. Accordingly, current HRC offers are at $450/mt CPT. “In such cases, surely all would prefer SABIC’s material. But it is for September shipment, while Indian mills are still okay for August. Hence, SABIC is again not in favour”, a UAE-based customer commented.