Business activity in the hot rolled coil (HRC) market in the United Arab Emirates (UAE) has slowed down this week after some restocking done previously. In the meantime, offers from some foreign and regional sellers are set at rather high levels. Overall, the market expects to see a clearer price picture in Asia in the coming week.
Having closed deals to the UAE at around $535/mt CFR earlier, Indian mills are not eager to offer below $550/mt CFR this week, while earlier the $540/mt CFR level was considered possible.
As China is just returning to the market this week and further developments in the Far East remain unclear for now, offers have been sporadic. UAE-based buyers report that China-origin HRC is available at $520/mt CFR, with no deals heard.
Japanese suppliers have rejected bids for HRC at $520/mt CFR this week, SteelOrbis has learned. Previously deals for sizeable lots were closed at $530-540/mt CFR, followed by offers at up to $550/mt CFR at the end of last week.
According to sources, Saudi Arabia’s Hadeed has recently announced new HRC offers for April shipments at $575-580/mt CPT. The level is considered to be not workable as it is at least $25/mt higher than the expected one. Deals for Hadeed’s HRC for March shipments were closed at $545-550/mt CPT earlier, buyers report.