The business activity in the North African HRC market has been relatively quiet towards the end of the current year with the domestic demand in the key countries – Egypt and Algeria – being at moderate levels with the local prices maintained. Export offers are indicative and vary depending on the batch size and the destination, while some suppliers prefer to wait to offer until early January. Import offers are traditionally mainly seen from China and Russia, while Turkish materials are available at higher levels.
In Algeria, the local HRC offers for February deliveries have remained at DZD 87,000/mt ex-works or around $615/mt ex-works according to $1 = DZD 129.5. The demand has been reportedly moderate with the stock level in the market evaluated as a medium one. Export offers for HRC for February shipments from Algeria vary depending on the destinations. The highest levels have been reported for the European buyers - $580-590/mt FOB, while for other markets the indications of $570/mt FOB and even lower than that are offered.
According to traders, the Egyptian mill is currently out of the market with HRC offers and plans to return in the second week of January with an attempt of an increase. Particularly, in Turkish market the levels of $565/mt CFR minimum are expected, which translates to $550/mt FOB, $5/mt up from the levels of late November.
The domestic HRC offers in Egypt have remained at EGP 35,000/mt ex-works or around $645/mt ex-works according to $1 = EGP 47.71, the lots are mainly for February production. Although the demand for HRC has been at moderate levels in Egypt, some of the buyers have been reporting some issues with delays in deliveries of HRC of certain sizes and grades. As a result, despite the valid safeguard of minimum EGP 3,673/mt (around $77/mt), some of the buyers express interest in the import HRC.
Lowest prices in the import HRC market of Egypt are coming from Russia from the sanctioned mills, which are offering for January and February shipments at $470-475/mt and $475-480/mt CFR, respectively. In the meantime, Chinese SAE1006 offers to Egypt have been reported at $500-510/mt CFR, $5-10/mt up over two weeks. Offers from Turkey are at $540-550/mt FOB to Egypt, making it around $560-570/mt CFR. “Levels [from Turkey] are high but also the sailing time is the best one you can get for Egypt. It might be especially [attractive for buyers] if the safeguard will be indeed revised somehow closer to February,” an Egyptian market player told SteelOrbis.
Similar offers from Russia - $470-480/mt CFR – have been also reported in Syria, Lebanon and Tunisia, as well as in some African countries. In the meantime, ex-China HRC offers have been reported at $510-515/mt CFR in Morocco, but at $495-500/mt CFR in the markets of West Africa.
Local prices in Egypt are indicated including 14 percent VAT, in Algeria – 9 percent VAT.