Import HRC offers to UAE remain under pressure

Monitoring the situation in the global steel market, most Emirati customers of hot rolled coils (HRC) have opted to be cautious in new bookings in anticipation of even lower offers from foreign suppliers. Specifically, while the major HRC suppliers to the UAE, namely those from India, are said to be ready to accept for boron-added HRC $635-640/mt CFR Jebel Ali levels this week, down $45/mt from offers valid last week, some Emirati re-rollers do not exclude that prices might decline below $600/mt CFR in the nearest future, and so they prefer to maintain a wait-and-see stance. “Despite a significant decline, prices have still failed to drive demand upwards. The market is very very slow here, with everyone just waiting and watching the market,” a major GCC region-based flats distributor stated. Meanwhile, an Indian flats producer has denied any possible prices below $660/mt CFR Jebel Ali, though echoing the negative sentiments in the market. “There are no inquiries, no response to offers,” an official at the Indian steel mill commented.

In the meantime, ex-China HRC offers to the UAE have declined by $10/mt during the past week to $620-650/mt CFR.

A cargo for 10,000 mt of ex-Japan HRC has reportedly been sold to an Emirati customer at $650/mt CFR, though the information has not been confirmed by the time of publication.