Low priced offers from China hit flat steel demand in UAE

This week, import flat steel offers to the UAE have declined by $5-10/mt as compared to last week, while more competitive offers, particularly from China, have had a negative influence on demand, which had been expected to improve. Local traders in the UAE state that there is actually demand in the market, but, due to the declines in import offers, market players have started to hesitate to conclude deals and so they have withdrawn their demand. In this context, traders in the UAE have not been able to offer resistance and accordingly have also reduced their offers, by $15-20/mt, amid the ongoing sluggishness of demand in the last few weeks.
 
In the UAE domestic market, traders are currently offering hot rolled coils (HRC) at $610-630/mt, cold rolled coil (CRC) at $720-740/mt, while their hot dip galvanized (HDG) coil prices are standing at $805-830/mt, all for deliveries to customers in late September and for advanced payments.
 
On the other hand, HRC import offers to the UAE are standing at $580-600/mt CFR Dubai, while plate import offers are at $600-615/mt CFR Dubai. Both prices, which exclude VAT, are for advance payment and for October shipments.