Over the past week, import hot rolled coil (HRC) offers to the United Arab Emirates (UAE) market have continued to decline, while demand has remained weak and there are no signals of a recovery. In the given period, import HRC offers to the UAE have declined by an average of $25/mt to $515-560/mt CFR. While no import deals have been heard in the UAE market, UAE-based importers of HRC are mostly not considering import offers as there is no demand for downstream use.
Ex-CIS HRC offers to the UAE market have moved down to $515-540/mt compared to the previous week, while Russian producers’ offers stand closer to the top of this price range. Meanwhile, Chinese suppliers’ HRC offers to the UAE have declined to $520-540/mt CFR, becoming competitive against the ex-CIS offers. According to market sources, Chinese HRC exporters are targeting the Far Eastern markets and are conclude most of their sales to this region. On the other hand, Indian producers have continued to lower their offers, though there was not much room for reductions in export offers given the high level of HRC prices in their domestic market. Indian producers’ price offers are at $550-560/mt CFR UAE and they are considered to be on the high side by buyers.
Some market sources believe that HRC prices will move upwards soon because of higher costs caused by strong raw material prices, even if demand continues to be weak. However, some market players contradict this opinion, suggesting that a price increase will not be a wise move amid the lack of almost any demand.