Foreign hot rolled coil (HRC) suppliers to the UAE market have increased their prices as the overall supply volume is currently limited. Moreover, the holiday period in China is about to start, which is expected to support the market in the short run.
India’s HRC offers for March shipment have been set this week at $540-545/mt CFR, up by $15-20/mt compared to the deals closed two weeks ago. The key reason for the high pricing is the significant improvement in the local HRC market in India. Moreover, the mills are aiming to increase local base prices by around $30/mt for February, SteelOrbis has learned. As a result, India is not expected to be aggressive in any of its export markets while its local HRC sales remain strong.
Taiwan, another HRC supplier to the UAE from Asia, has increased its offers by around $10/mt compared to February shipments offers. Currently, its HRC for March shipment is available in the UAE at $535-540/mt CFR, sources say.
Ukraine’s Metinvest has also increased its offer prices for the UAE. While last week ex-Ukraine levels were at $510-520/mt CFR, this week they have increased to $530-535/mt CFR for small coils for March shipments.
In the meantime, regional supplier Hadeed, according to market sources, is not offering any HRC to the UAE just yet. Some say that the supplier is undergoing some maintenance.