The Middle East flats market has been more active compared to the recent past, but demand in this market is still calm.
HRC prices in the local Saudi Arabian market have this month been at $600/mt ex-factory, down from the price level of $750/mt in October. Although the HRC market is not so active, the price level for 1.5-2 mm HDG with 275 gr/m² zinc coating is at $840/mt ex-factory. Also, the offers from China for December shipment for 0.5-1.5 mm HDG with 275 gr/m² zinc coating are at $850/mt CIF Saudi Arabia.
Looking at the UAE, this week there have been HRC offers from Ukraine, Russia and South Africa at $450-500/mt CFR Dubai, (the offers from Russia have been at $500/mt CFR). It is observed that there has not been any big difference regarding price levels from China following the Chinese government's cancellation of export duties for flats. Although the flats market in Dubai has this week generally been calm, it can be said that it has been more active compared to recent weeks. Also, this week it has been heard that there have been some more deals for galvanized material in Dubai. Price levels for 0.4-0.5 mm HDG material with 120 gr/m² zinc coating have been at AED 4,800-5,000/mt ($1,307-1,361/mt), while 1-2 mm HDG prices have been at AED 3,900/mt ($1,062/mt).
Meanwhile, another important development this week has been observed in Iran. The Iranian steel market has been deeply affected by the economic problems observed since the summer months. To recall, stockists were selling HRC material at the price level of $1,100/mt when Mobarekeh decreased its HRC prices to $700/mt. Besides, at that time SteelOrbis reported that Iranian stockists experiencing trouble in payments had sold their materials to Dubai traders for cash payments at considerably lower price levels compared to the general market price. As of this week, it is heard that there have been some HRC export deals from Iran at the price level of $515/mt FOB. Also, it is heard that there have been some deals concluded at the Iran Mercantile Exchange at the price level of $516/mt.
Looking at Lebanon and Jordan, with buyers in these markets not willing to buy due to their high stock levels, offers from Ukraine to this market are currently at $450/mt CFR.
China's decision to remove its export duty on flats has not yet had an impact on the Middle Eastern countries, as the price levels of the CIS offers seem more acceptable for the time being.