Import hot rolled coil (HRC) prices in the United Arab Emirates (UAE) have remained under pressure with sentiment having become even more fragile following some low-priced bookings ex-China.
At the end of last week, Chinese origin HRC was offered to the UAE at $485/mt CFR for SS400, down $15-20/mt since earlier this month. As a result, several deals for 3,000-5,000 mt were fixed recently at $480-490/mt CFR, SteelOrbis has learned. The transactions were closed mainly for April shipment, though some for March.
Actual deals for ex-China HRC have pulled down prices from other suppliers. Ukraine’s Metinvest has been negotiating March production at $505-510/mt CFR with bids coming at below $500/mt CFR, SteelOrbis understands. In early February, the supplier’s price indication was at $530-535/mt CFR.
The positions of Indian HRC suppliers to the UAE have been under pressure also. While still having high demand locally in India and receiving much lower bids from Emirati customers, the Indian mills have taken a pause to estimate the market situation. “Till this week there has been no real impact from China’s return, only some negotiations. Now they are ruining the market,” a producer said. Indicative offers for ex-India HRC are currently standing at $510-520/mt CFR, versus $530-540/mt CFR reported last week. No fresh deals have been heard and buyers are waiting.
Market players mainly do not foresee imports from China to be sizeable as a lot of issues regarding transportation remain questionable. However, if prices for products continue falling, pressure will increase to the benefit of UAE-based buyers and to the regret of alternative foreign suppliers.