Monitoring the situation in the global steel market, with bearish sentiments pervasive recently worldwide, Emirati customers of hot rolled coil (HRC) have not missed the opportunity to voice lower bids in response to the prices targeted by suppliers. Lacking support from their traditional customers in other regions, India-based HRC suppliers have opted to accept lower bids rather than to build up stocks as the end of year approaches. Consequently, quite a large number of deals have been done since the beginning of December.
Specifically, in the latest negotiations with India-based HRC suppliers Emirati customers have managed to get $820/mt CFR, having booked at least 25,000 mt in total at this level. Previously, around 15,000 mt of ex-India HRC changed hands at $825/mt CFR, while most deals at the beginning of December were fixed at $830-840/mt CFR. “The situation is not very stable. If the new variant of the virus spreads too much, then sentiments would definitely take a beating. But as of now, trading is going on,” a representative of a UAE-based distribution company commented with regard to the current market situation.
According to sources, HRC from the regional producer Hadeed in the Emirati market is available at $825/mt delivered, while domestically in Saudi Arabia HRC prices have hovered at $1000/mt delivered. In particular, last week a 3,000 mt lot of HRC was traded in Saudi Arabia at the abovementioned price. “Many projects in Saudi Arabia necessarily have to use only Hadeed materials due to the localization drive. The customers have no other option but to accept the company’s prices,” a Saudi trader commented. Meanwhile, India-based exporters are ready to supply HRC to Saudi Arabia at the same levels as to the UAE, namely at $825-830/mt CFR.
Meanwhile, ex-China HRC has been available in the UAE at $840-890/mt CFR, with little interest from buyers due to the less attractive price in comparison to ex-India HRC.
Ex-China cold rolled coil (CRC) offers to the UAE have been heard at $900-920/mt CFR, while CRC from India is said to be available at $960/mt CFR.
In the hot dip galvanized (HDG) segment, ex-China offers have been heard at $995-1,020/mt CFR this week, while ex-India HDG has been voiced at $55-70/mt higher. Meanwhile, at the beginning of December, local Emirati producers have been selling 1 mm Z275 HDG coils at $1,240-1,250/mt delivered.