Although market players in the UAE have returned to business after the Eid holiday, buying activity in the flats market has remained mostly at a standstill. Due to the uncertainty towards future developments, most buyers have opted to closely watch the situation in order to evaluate their future actions.
Nevertheless, import hot rolled coil (HRC) suppliers have remained quite flexible in order to attract buyers. In particular, ex-India boron-added HRC offers to the UAE have declined to $680-685/mt CFR from $710-740/mt CFR in early July, with some market buyers reporting that $670/mt CFR could be easily achieved as well. “Generally, it is quite silent here now. A freefall in global steel prices, coupled with an unprecedented revaluation of the US dollar, stemming from the consequences of Russia's war in Ukraine, has continued to severely affect the regional market, besides all other factors” a UAE-based flats distributor stated. Ex-China HRC offers have been settled in quite a wide range, namely at $630-660/mt CFR, depending on the supplier. This is a $100-110/mt decline compared to the levels valid at the beginning of July. Meanwhile, ex-China cold rolled coil (CRC) has been heard at $670-690/mt CFR this week, while ex-India CRC is available at $710-730/mt CFR, according to sources.
In the meantime, ex-India Z275 hot dip galvanized coil (HDG) with 1 mm thickness is said to be available at $900-930/mt CFR, down $250-280/mt within the past weeks. Chinese suppliers have been offering HDG to the UAE at $840-860/mt CFR this week, according to reliable sources.