Import offer prices for import have moved up in the UAE since last week, supported by the uptrend in China. Even considering some small decline in futures in China today, August 13, the mood in Asia remains supported amid rises in costs at Chinese mills due to continuing increases in coke and coking coal prices and the production cuts to be implemented in Tangshan during August 16-September 3.
This week, HRC offers from China to the UAE for SS400 grade have been voiced at $510-520/mt CFR for September shipments, adding $10/mt since last week. Many sellers have been focusing on the local market and have not been active in offering overseas. As a result, even traders offering non-VAT material have withdrawn their low prices seen at around $495-500/mt CFR last week.
At the same time, even though prices for other Asian origins of HRC for the UAE have improved as well, some sporadic demand has been. In particular, around 28,000 mt in total of Japanese HRC have been traded to the UAE and Saudi Arabia at $510-515/mt CFR for October shipment. Ex-Japan HRC price levels are $5-10/mt higher than last week.
Indian offers are stable at $540-550/mt CFR, which is already too high for Emirati customers.