Calmness has this week continued in the Southern Europe and Middle East flats markets due to the upcoming holidays. Another silent week has passed in those markets. After the export duty removal decision for flats in China, another news has this week been heard and according to the new restrictive decision in India, only actual users will be permitted to import hot rolled coils via licenses to be issued by the government, whereas stockists and traders will no longer be allowed to import the material in question. For remembering, in the middle of this year, Indian government had announced that they would impose export duty in order to stop the inflation rate and price increase in the both global and local markets. However, the government had stepped back with the pressure from the Indian producers. Now, due to the decreasing price levels in the local market, the government seems like they have decided to stop the exports: another decision for protection. Developments in the upcoming period will show the effects, whether the situation will continue or how long it will continue. The governments' each decision will have an effect over the business. Another reason for the Indian government's decision in question is the China's increasing HRC export with the export duty removal for HRC in China.
Looking at the Middle East and the Southern Europe flats markets, Turkish import flats market has this week become quiet again after the latest deals from Ukraine in recent weeks. Meanwhile, Ilyich offers have still been at the price level of $400/mt FOB for HRC and at $480/mt FOB for CRC. For plates, Ilyich's offers for commercial grades have been at $600/mt FOB, whereas the offers for shipbuilding plates have been at $650/mt FOB. It can be said that no demand is being shown for the offers in question for the time being.
It is heard that there has been a flats deal in Saudi Arabia this week. Accordingly, 1.2 mm HRC has been concluded by as Saudi Arabian pipe producers this week at the price level of $550/mt CFR. With demand continues to be slack, a deal has been heard after a long time. Also, due to the high stock levels in the stockists and due to the global financial situation, Saudi Arabian importers have been keeping themselves out of the market. In stockists, the HRC prices have been at SAR 2,500/mt ($667/mt), CRC prices have been at SAR 3,000/mt ($800/mt) and HDG price have been at SAR 3,200-3,800/mt ($853-1,013/mt). Saudi Arabia has been applying five percent import duty for flat steel imports except the imports from the contractual countries i.e Egypt.
Another news of deal have come from Syria for HDG. It is reported that there have been an HDG deal from Egypt to Syria this week. 1.5 mm 150 gr/m² zinc coated HDG have been concluded from Egypt to Syria at the price level of $740/mt CFR. HDG offer prices to this country have registered a decrease compared to last week due to the high stock levels in China. Although there is no considerably activity in the local market, it is heard that Syrian traders have this week sold HDG to Iraq. It is reported that Lebanon and Jordan have this week been quiet. Due to the fact that the demand is low a the local markets in those two countries and due to the fact that the market players expect the prices will go down, no great interest for purchasing is being shown.
In Europe, it can be said that no change have this week been observed compared to recent weeks, in Southern Europe in particular. The base price levels of the Italian producers Ilva for HRC have this week been at €380-390/mt ($482-495/mt) + all extras, and for CRC have been at €440/mt ($558/mt) + all extras. HDG base prices of the same producers have been at €560-570/mt ($710-723/mt). Price levels of the stockists in this country have not registered a change compared to last week and the demand in the same country has been flat with the effect of the upcoming holidays. Meanwhile, ex-CIS HRC offers to South Europe have been at €380-400/mt ($482-507/mt) C&F Italy.
Looking at Portugal, this country is showing no difference compared to Italy. The local market flats price levels have remained unchanged compared to last week's price levels. Accordingly, HRC prices in this domestic market have still been at €580-600/mt ($735-761/mt), HDG base prices have been at €600/mt ($761/mt).
We will see in the upcoming days that how will December go with the effect of the holidays in both European and Muslim countries.