With import hot rolled coil (HRC) offer prices having continued to move down in past weeks amid muted trading activity, most Emirati re-rollers have opted to hold back from purchases in anticipation of even cheaper prices. Nevertheless, the appearance of certain signs of better sentiment in the global steel market, stemming from the recent rise in steel prices in China, some stabilization of scrap deal prices in Turkey, coupled with the announced decrease in production by global steel mills, have undermined the possibilities for a further decrease in HRC prices, SteelOrbis believes.
Accordingly, ex-India boron-added HRC is said to be available in the UAE at $680/mt CFR, though Indian suppliers insist that there have been no levels voiced below $710/mt CFR so far. Last week, rare deals from India for small lots were done at much higher levels, at $760-770/mt CFR Jebel Ali. “People are all struggling here, with no firm buying seen. Consequently, the market is waiting for prices to soften further,” a representative of an Emirati re-rolling mill stated. This week, lower-priced offers of HRC produced by Russian mill MMK have emerged in the market, though failing to find any demand. Specifically, ex-Russia HRC is said to be available through traders at $650-660/mt CFR. “There is not much interest in Russian material. Moreover, we hear that Russian material is available in India at lower prices. Hence, everyone's still hoping for a further fall here,” a GCC-based market source stated. Meanwhile, ex-China HRC from first-tier mills is offered at $720-730/mt CFR, without any interest due to the unattractive prices.