Hot rolled coil (HRC) markets in the Middle East and North Africa (MENA) have remained quiet as expected with the start of Ramadan. It is reported that demand is still low in the region, with prices trending sideways in general.
Early this week, Egyptian flat steel producer EZDK announced that it has increased its domestic HRC price to EGP 4,450/mt ex-works, exclusive of 10 percent VAT. While this producer's HRC export offers are at $730/mt FOB, these offers do not find much interest in the Turkish market.
In the United Arab Emirates (UAE), HRC demand is tepid and the local market has remained quiet due to Ramadan. HRC import offers given to the UAE market have remained at previous price levels in general at $720-750/mt CFR. HRC offers from South Korea to the UAE at $725/mt CFR have found acceptance in the country's flat steel market, while Chinese offers at $740-750/mt CFR have been found to be on the high side by domestic buyers. Some market players foresee that these import offers may increase in the coming period.
Remaining quiet in August so far after July, the Saudi Arabian HRC market is expected to witness the most active period of the year during September and October. HRC import offers given to the Saudi market have remained unchanged this week. SteelOrbis has learned from market sources that Asian offers to Saudi Arabia for 1.2 mm HRC are at $800-820/mt CFR.
While the Middle Eastern HRC markets are predicted to continue trending sideways during Ramadan, since the market is expected to revive after Ramadan prices may increase by late August and September.