The uncertain market conditions in the Middle East and North Africa (MENA) due to the changes in the political climate in the region are still causing the regional flat steel buyers to remain reluctant to conclude new purchases. In particular, the North African flat steel market has remained quiet.
SteelOrbis has learned from market sources that, due to the ongoing political turmoil in Libya, the country's only flat steel producer Libyan Iron and Steel Co. (LISCO) has suspended its production and is not issuing any offers for the time being.
Meanwhile, in Tunisia, in line with the recent change of government in the country, the domestic market is expected to recover and flat steel demand in Tunisia is foreseen to become more active.
In the UAE flat steel market, it is reported that transaction activity is currently on the low side and ex-stock hot rolled coil (HRC) offers to the country are standing at $750-780/mt CFR.
SteelOrbis has been informed that demand is still quiet in the Saudi Arabian flat steel market, with the flat steel prices of local stockists remaining at their previous levels. In the meantime, in the Saudi Arabian domestic market, local prices for 2-12 mm HRC are at SAR 2,950-3,050/mt ($787-813/mt), while hot rolled plate (HRP) prices stand at SAR 3,200-3,400/mt ($853-907/mt), both for deliveries to customer. Import flat steel offers to Saudi Arabia have generally been for ready stock materials. Accordingly, import offers for ex-stock 1.2 mm HRC are currently standing at $860-880/mt CFR. As SteelOrbis previously reported, Saudi Arabian flat steel producer Hadeed's HRC base price for the Saudi Arabian domestic market stands at $815/mt, while its cold rolled coil (CRC) base price stands at $900/mt and its hot dip galvanized (HDG) coil base price is at $1,000/mt, all for deliveries to Dammam.
On the other hand, as SteelOrbis has been informed by market sources, Iranian flat steel producer Mobarakeh Steel has received HRC counter offers at $740-760/mt FOB in its HRC export tender. It is learned that Mobarakeh Steel's HRC sales price to Europe stands at $760/mt FOB, while its HRC sales price to the Middle East is at $755/mt FOB.