Import hot rolled coil (HRC) prices in the UAE have rolled back and the sellers have not been able to realize their earlier targeted increase. One of the key reasons is the rather aggressive price policy of Chinese sellers, which has pulled down the general offer levels in the segment.
While at the beginning of the week offers for Chinese origin SS400 HRC were at $500-510/mt CFR, having dropped by $10-20/mt since early this month, the prices have subsequently dropped down to $485/mt CFR, creating a negative mood in the market. The product is available for April shipments.
Indian mills, which had been aiming to sell at $550/mt CFR earlier, can afford to be less aggressive now and have decreased their offers to $530-540/mt CFR versus $520-525/mt CFR in bids. “We don’t care much about Chinese suppliers’ aggressive export policy as long as the demand in the local [Indian] market is good. As for today, we are not ready to start negotiations at lower than $530/mt CFR,” an Indian supplier reported.
UAE-based customers expect Ukraine’s Metinvest to return with $510/mt CFR levels. Currently, the supplier is reportedly out of the market, trying to evaluate the situation. Its previous offers were at $530-535/mt CFR.
Taking into account such a significant weakening of HRC pricing in the UAE, offers from Saudi Arabia’s Hadeed at $575-580/mt CFR for April shipment are not considered workable, SteelOrbis understands.