During the past week, import hot rolled coil (HRC) offers to the United Arab Emirates (UAE) have continued their downtrend, while the new moves made in the trade war between the US and China have also affected UAE-based buyers, causing them to maintain a wait-and-see stance. UAE-based buyers are known to have increased their HRC inventories after Ramadan and, with the support of their replenished inventories, they are expected to postpone their HRC purchases as long as current apprehensions continue to prevail in the global steel market.
Import HRC offers to the UAE have declined by $5/mt on the lower end and by $10/mt on the upper end week on week to $605-620/mt CFR. Meanwhile, Indian producers’ HRC offers to the UAE are currently in the range of $610-620/mt CFR. Although, China has not been very active in the UAE market recently, Chinese HRC offers to the country have declined to $615/mt CFR over the past week. Also, ex-CIS HRC offers to the same destination are at $605-610/mt CFR. Turkish HRC producers are observed to be accelerating their search for alternative markets following the EU’s decision to impose quotas and tariffs on steel imports. SteelOrbis has been informed that a Turkish steelmaker has been meeting with UAE-based market players and is preparing to give HRC offers to the UAE.