In the UAE market, demand for hot rolled coil (HRC) is low, with transactions remaining sluggish despite the price reduction in foreign suppliers' import offers to the country.
Chinese HRC offers to the Middle East have been decreased to the level of $680/mt FOB, while Iranian steel producer Mobarakeh Steel has reduced its HRC export offers from $720/mt FOB in mid-September to $705/mt FOB. In the meantime, Indian HRC offers to the UAE stand at $730-750/mt CFR. However, this price level has failed to find acceptance as it is thought to be very high.
In Saudi Arabia, HRC demand is better than in other Middle East and North Africa (MENA) markets and demand has continued to increase gradually since mid-September. In the Saudi Arabian domestic market, HRC prices are at $770-790/mt ex-warehouse, while 1.2 mm HRC import offers are at about $800/mt CFR and HRC offers from Egypt are at $750/mt FOB.
On the other hand, in North America HRC demand is low and the markets are very quiet. In the Tunisian market, although HRC offers from Russia are at $730-740/mt CFR, this price range has failed to gain acceptance so far. In the meantime, having the opportunity to offer more competitive export offers due to the weakening of the euro against the US dollar, European mills are offering HRC to the North African market at €520-530/mt CFR ($697-710/mt) CFR, and this price level is thought to be workable.
Market sources state that the Middle Eastern and North African flat steel markets may witness some revival by late October, with a slight improvement in demand.