Considering the recent weakness of the raw material and steel markets worldwide, negative sentiments in the hot rolled coil (HRC) segment in the Gulf Cooperation Council (GCC) region have only deepened. Consequently, the number of spot deals has apparently dwindled down to almost nothing, with most regional buyers waiting for a further price decrease.
According to market participants, this week the regional producer Saudi Arabia-based Hadeed has decided to decrease its HRC prices from $770/mt DDP to $750-755/mt DDP, following the downtrend in the global market. “Despite a decline in prices, we still feel they are high. Our customers are not ready to pay such prices and they still want to wait and hold their buying decisions. It is really a painful situation here,” one major HRC buyer in the UAE stated. Ex-China 1.5-2 mm HRC offers have been settled at $740-750/mt CFR, for end of March-April shipment. According to local sources, ex-India HRC is available at $780-785/mt CFR, though by the time of publication all traditional suppliers denied any valid HRC offers to the GCC at present.