Given the drop in import offers, particularly from Chinese suppliers, purchasing activity in the UAE's hot rolled coil (HRC) import market has increased marginally. Even though local end-user demand remains unsatisfactory, Emirati purchasers who have needed to replenish have continued to accept lower prices and have attempted to close multiple deals.
Accordingly, Emirati buyers booked 3,000 mt HRC from ex-China last week at $540/mt CFR, while sources say some deals have already been done this week at $535-540/mt CFR for August shipment. Currently, offers from China to the UAE for SS400 grade are at $535-540/mt CFR for September shipment, down from $550-560/mt CFR at the beginning of last week and from $540-545/mt CFR at the end of last week.
On the other hand, while no fresh deals are being reported from Japan this week, sources indicate that about 5,000-10,000 mt HRC was sold to the GCC last week at $555/mt CFR. In the meantime, Japanese suppliers are now offering $550/mt CFR for shipments in September but, given China's aggressive price reductions, it is anticipated that offers will drop much further.
In contrast to the other active suppliers, India and South Korea, who still do not believe UAE consumers would accept their offers, have decided to refrain from giving HRC offers to the GCC, to focus instead on their domestic trade which is still robust.
