Despite the gradual easing of the Covid-19 restrictive measures, sentiment in the hot rolled coil (HRC) market in the UAE still lacks optimism. Interest in new purchases from most customers is still weak due to high inventories. Taking into account such a development and, in particular, stronger demand in other sales destinations, most suppliers have reallocated their offers from the UAE to other regions.
Meanwhile, ex-India HRC offers to the UAE have increased by $25/mt over the past two weeks to $440/mt CFR. According to mills, additional $10-15/mt discounts are possible but with no interest from the buyers’ side. “The UAE is still a very cool market for flats with all being in a settling mode this week. Next week, some activity is expected to be back but at a slow pace”, a local re-roller said. “We anticipate the prices will rise further on the grounds of demand in Asia. However, we have to cut our huge high-priced inventories in order to return to new purchases,” another UAE-based customer told SteelOrbis.
According to sources, Japanese and South-Korean suppliers have temporarily left the UAE market. The regional supplier Hadeed is likewise out of the market. “As of now, no offers from them as they are evaluating their positions. Obviously, they will be back with higher prices based on support from the new duty”, a local manufacturer said.