With the end of the current year approaching, Japan-based hot rolled coil (HRC) suppliers have stepped up their efforts to boost activity in the GCC region, especially in the UAE. In particular, the Japanese sellers have managed to book to the UAE at least 35,000 mt of HRC during the past fortnight, having been especially accommodating to customers there. Amid recent developments, the competitiveness of India-based HRC suppliers has noticeably declined in the region.
Specifically, active offerings of HRC since the second half of December from Japan-based HRC suppliers resulted in bookings at $780-800/mt CFR to the UAE at first and then at $765-770/mt CFR later. “Japanese suppliers have accepted the fact that they do not have any choice but to follow the global trend. Consequently, some of them started to be much more aggressive, in the GCC region in particular,” an international flats distributor commented with regard to the recent developments. Meanwhile, despite some bookings of ex-India HRC at $780/mt CFR UAE, most Indian suppliers have resisted bookings below $790-800/mt CFR. “There are some certainly aggressive sellers in India as well, though overall we are seeking to keep prices from recording a freefall,” an official at a major Indian flats mill stated. Previously, as SteelOrbis reported, ex-India HRC bookings to the UAE were done at $820-825/mt CFR in the middle of December.
Meanwhile, 1 mm Z275 HDG coils produced by local Emirati mills are currently available at $1,220-1,230/mt delivered, down $20/mt over the past two weeks.