Import hot rolled coil (HRC) prices in the United Arab Emirates (UAE) have decreased by an average of $10/mt over the past week to $535-560/mt CFR.
In the current week, some Chinese mills and traders have reduced their export prices twice to stimulate their flat steel sales, and so Chinese HRC export offers to the UAE have declined by $20/mt week on week to $535-540/mt CFR. Market sources state that demand for Indian HRC is still at decent levels, while Indian exporters slightly reduced their HRC offers to accelerate sales ahead of the end of their fiscal year. As a result, Indian HRC offers to the UAE have fallen by $10/mt week on week to $550-560/mt CFR.
UAE-based buyers continue to show demand for HRC but they are concluding deals only in line with their needs. Buyers in the UAE believe that Chinese HRC export quotations may fall further in the coming weeks, and so they are waiting for prices to settle before concluding bookings for large tonnages. On the other hand, since India experiences seasonal changes in June, domestic demand for HRC in this period decreases slightly with export prices indicating slight declines. Accordingly, no sharp changes are foreseen in India’s HRC offers to the UAE ahead of the anticipated seasonal changes in question if demand does not shift significantly in the short and medium terms.