Over the past week, import hot rolled coil (HRC) offers to the United Arab Emirates (UAE) have remained stable at $545-560/mt CFR. As their inventories of HRC are on the low side, UAE-based buyers have continued to make bookings this week and deals have been heard at the price level of $545/mt CFR. In short, demand for import HRC in the UAE is at decent levels.
Meanwhile, ex-China HRC offers to the UAE are still at $560-565/mt CFR, remaining unchanged week on week. Indian suppliers’ HRC offers, which reached $550-560/mt CFR last week, have also remained stable in the same period, though UAE-based buyers consider $560/mt CFR to be on the high side.
While UAE-based buyers have concerns that Chinese HRC prices may increase in the coming period due to the strength of the Chinese domestic HRC market, some UAE-based HRC traders have already concluded some sales contracts and need to supply the HRC tonnages contracted within the scope of these deals. Under these market conditions, demand for import HRC in the UAE will likely accelerate in the short term.