While local HRC prices in North Africa have been stable over the past several weeks, on exports some of them are active, mainly in the European markets, while some prefer to wait and see, not considering the current price levels, valid in the global markets as workable. Import HRC offers also keep coming to the region with China and Russia remaining the key suppliers.
In particular, in the Egyptian domestic market, end-of-February and March production HRC is available at EGP 35,000/mt ($655/mt) ex-works based on $1 = EGP 46.87. Local market players report that demand has been moderate, while some customers say there are certain delays in deliveries from the Egyptian mill, along with an issue with some size and grade availability.
As regards exports, the Egyptian mill is currently inactive, not being willing to accept low bids from the main customers, particularly as competition over EU buyers is currently fierce, while Egyptian material is subject to a sizeable AD rate in Europe. The latest offers for HRC from Egypt were reported in the second half of January at $550-560/mt FOB.
In Algeria, local HRC prices are at DZD 88,500/mt ($627/mt) ex-works based on an exchange rate of $1 = DZD 129.5. The sales are reported to be going quite well, according to the requirements of the end-user consuming sectors and the retail market.
Export HRC offers from Algeria are at $570-580/mt FOB for March-April shipments, stable over the past couple of weeks. The EU market is among those targeted. In fact, the latest deals for around 20,000-30,000 mt of ex-Algeria HRC were closed at €540/mt CFR southern Europe in mid-January. The most recent offers have been reported at €615-620/mt DDP. In the meantime, Turkey’s HRC suppliers have traded at least 200,000 mt of HRC to Europe from mid-January at $550-560/mt FOB and up to $565-568/mt FOB in the most recent deals. The current level of offers stands at $560-570/mt FOB for April shipments.
In the import HRC market in the region, Russia is still active and offering the lowest prices. One of the sanctioned mills has recently finished sales of March shipments to the MENA region at $480/mt CFR or around $430-435/mt FOB Baltic region. Another non-sanctioned mill has announced a $460/mt FOB target for March shipment HRC, while February volumes were sold mainly at $440/mt FOB Black Sea. The delivered offers are assessed at $485-490/mt CFR to North Africa and nearby Middle Eastern markets. In Lebanon, however, the offers from Russia are still reported at $470-480/mt CFR, while in Egypt they are at $480-485/mt CFR, SteelOrbis has learned. According to sources, in the previous round of sales Russian mills traded medium and large volumes to the North African region and to the markets of Syria, Lebanon and Israel within the range of $470-480/mt CFR with the total volume estimated at 80,000-100,000 mt.
The Chinese presence in the HRC market has been dwindling ahead of the upcoming holiday period. According to sources, in Egypt the indications for ex-China HRC stand at $512-515/mt CFR, up $2-5/mt over the past two weeks, while in Tunisia offers are slightly above $515/mt CFR. In addition, offers to Nigeria have been reported at $530/mt CFR. Chinese cargoes are available for April shipments.
Local HRC prices in Egypt include 14 percent VAT, while local prices in Algeria include nine percent VAT.