With the downtrend in the global steel market having gained momentum lately, hot rolled coil (HRC) customers in the GCC region have opted to keep watching the situation on the sidelines, with most of them believing that prices have not reached the bottom yet.
For now, ex-India SAE1006 2 mm HRC offers have been heard at $910-920/mt CFR, for shipment in June-July, down $40-55/mt from levels at the end of April. “I am afraid, even to get a price slightly below $900/mt CFR is a lot of luck today, given today's business environment,” an international trader commented. There has been chatter in the market about an alleged booking of ex-India HRC to the UAE at $910/mt CFR, but the information has not been confirmed by the time of publication.
Ex-China HRC offers have been heard at $880-890/mt CFR, down $10-20/mt since the end of April, though some traders have reported that levels close to $850/mt CFR are more relevant by the end of the current week.
Meanwhile, ex-South Korea HRC and ex-Japan HRC offers have been heard at $940/mt CFR and $950/mt CFR, for June-July shipment, respectively, with no buying interest seen due to the availability of more attractive offers in the market.
In the meantime, the regional flats supplier, Hadeed, has issued its HRC offers for July production to the domestic market at $1,020/mt CPT.