Hot rolled coil (HRC) prices in the UAE have slumped even more than expected over the past week. Meanwhile, demand has remained in a lull as buyers still believe that offers will continue to fall further as uncertainties due to the Covid-19 emergency worldwide grow day by day.
In particular, ex-India HRC has plunged by $35-40/mt since last week to $430/mt CFR. Some mills have been testing the market even with offers at $400/mt CFR, according to sources, though no solid demand has been seen. Most buyers are postponing their purchases, trying to evaluate the future market development and potential Covid-19 effects. “Under such circumstances, firm offers below $400/mt CFR may exist shortly, so we are not in a hurry to buy today,” a leading UAE-based pipe manufacturer stated.
South Korean mills have decreased HRC prices to the UAE by $30/mt over the past week to $435/mt CFR, though no solid interest has been reported. According to sources, Japanese suppliers have been planning to announce prices at around $440-450/mt CFR this week. However, there are still no firm offers.
Ex-Ukraine offers are indicative at $430/mt CFR for small coils, SteelOrbis has learned. A week earlier, the prices were standing at $460-470/mt CFR. No fresh deals have been closed.
According to most market participants, regional supplier Hadeed is currently collecting bids, with plans to announce its HRC prices by the end of this week. The offers are expected to be in the range of $440-470/mt CPT.