Business activities in the UAE’s hot rolled coil (HRC) market have started to slow down due to the strong impact of price increases in the import segment. Although there are some purchases of minor tonnages this week, market participants believe that restocking is being kept to a minimum since end-user demand in the UAE is low and stockpiles are sufficient.
Accordingly, China has sold some small tonnages of SS400 HRC at $600-605/mt FOB or around $650/mt CFR to the GCC. In particular, this week HRC offers for the UAE have risen to $650-660/mt CFR, from $630-640/mt CFR two weeks ago. Additionally, according to sources, China is offering HR plates at $760/mt CFR to Jebel Ali port for March shipment.
Similarly, India’s HRC offers for February shipment have been set this week at $650-660/mt CFR, up by $40/mt compared to the deals closed two weeks ago. However, due to restricted allotment and forecasts of further price increases, India's offerings to the UAE have been limited. Indian suppliers are also offering HR plates at $680/mt CFR to Jebel Ali port for shipment at the end of February.
Furthermore, South Korea has boosted its HRC offers to the UAE to $710/mt CFR for March shipments, up from $620-640/mt CFR previously, while Taiwan has offered to the UAE at $670/mt CFR for March shipments.