HRC market on hold in UAE

Despite the gradual resumption of business activity in end-use sectors, the Emirati hot rolled coil (HRC) market remains on standby mode. Higher prices for HRC imports and still insufficient demand for finished products continue to slow down buying activity. As a result, some traditional HRC exporters to the UAE have shifted their volumes to destinations with better demand. Nevertheless, the prices for HRC in the UAE over the past two weeks have firmed up further in line with the global trend.

While some Indian suppliers have temporarily left the Emirati market, a few rare ex-India HRC offers to the UAE have been voiced at $440-445/mt CFR, versus $420-430/mt CFR fixed in deals two weeks ago. “There are no offers from our side, better prices are elsewhere”, the representative of one Indian mill stated, commenting on the situation. “Buying activity is very low. Buyers expect prices at the range $430-435/mt CFR,” another producer told SteelOrbis.

According to local sources, South Korean HRC offers to the UAE for August shipment are at $435-445/mt CFR, reaching in some cases $450/mt CFR.

Meanwhile, the sentiment in the UAE HRC market for the short term remains quite adverse. “Business is coming up, but at a very slow pace. Besides all the negative impacts caused by the coronavirus pandemic, in July and August the steel industry will be affected by summer working hour restrictions and, consequently, slower construction activities again,” an Emirati re-roller said.