The spread of the coronavirus worldwide and the collapse of oil prices have strengthened the concerns of hot rolled coil (HRC) market insiders in the UAE. As sentiment in the global market is negative, buyers are refraining from piling up stocks, being quite confident of a further price drop.
Ex-India HRC offers for April shipment have dropped by $15/mt over the past week to $485-490/mt CFR UAE. While buyers keep pushing prices down further, suppliers insist “there is no logic to sell lower than the current level.”
Japanese mills have decreased HRC prices to the UAE by $10/mt over the past week to $480/mt CFR, but still no solid demand has been reported. “Actual bookings are yet to be seen,” an Emirati pipe producer told SteelOrbis.
HRC offers from Saudi Arabia’s Hadeed are traditionally among the highest prices. Its prices for May shipments have been voiced at $550-560/mt CPT, down $20-25/mt over the past month.