The North African and Middle Eastern flat steel markets were generally quiet in October, though demand in these markets showed some improvement as compared to September. Meanwhile, the uncertainty in flat steel prices causes buyers to remain hesitant as regards new purchases and this hesitation is likely to continue for a while in November, given the approach of the Feast of Sacrifice.
In the local Egyptian market, EZDK has decided to keep its hot rolled coil (HRC) prices stable. Beginning from the summer months of this year, EZDK has maintained its HRC price stable at EGP 3,750/mt ($649/mt), thereby also causing HRC, CRC and galvanized steel (HDG) prices to trend sideways in the Egyptian domestic market.
Demand in the Saudi Arabian market has shown some increase as compared to September, but it still remains below the desired levels. SABIC has kept its flat steel prices stable. Accordingly, its HRC price stands at $700/mt ex-works. The slack demand in the Saudi Arabian domestic market is also reflected in weakened demand for flat steel imports. Buyers prefer over-rolling material, instead of prime quality material. However, demand for HDG in Saudi Arabia is stronger as compared to demand for HRC. While SABIC's domestic HDG price stands at $880/mt ex-works, HDG offers to Saudi Arabia stand in the price range of $870-880/mt for deliveries to warehouse.
Activity in the flat steel markets in North Africa and the Middle East is likely to be slow in November considering the hesitation of buyers to conclude new purchases due to the uncertainty in the flats markets, as well as the lack of strong demand for finished steel products and, finally, due to the approach of the Feast of Sacrifice holiday.