The ongoing political turmoil in the
Middle East and North
Africa (MENA) has continued to affect the steel markets. Since this region is one of the traditional flat steel export markets of
Ukraine and
Russia, the situation in North
Africa is also having a negative impact on the
CIS producers. It is already known that last month, following the events in
Egypt, ex-
CIS steel cargoes bound for North
Africa were diverted to nearby alternative markets such as Turkey and Bulgaria.
Egyptian flat steel producer
EZDK has recently resumed production and has started to issue its domestic and export offers. Accordingly,
EZDK's hot rolled coil (
HRC) export offers stand at $800-820/mt FOB, depending on the target market. SteelOrbis has learned from market sources that the producer has kept its domestic
HRC price unchanged at EGP 4,000/mt ($678/mt) ex-works. In January,
EZDK had increased its domestic
HRC prices by EGP 250/mt for the first time in six months.
On the other hand, in line with Saudi Arabian market players' expectations, the Saudi Arabian steel producer Hadeed has increased its flat steel prices. Accordingly, the producer's price hike for cold rolled coil (
CRC) and hot dip
galvanized (HDG) coil has been lower than its price increase for
HRC. Thus, Hadeed's domestic
HRC base price rose to $815/mt, while its
CRC price increased to $900/mt and its HDG price climbed up to $1,000/mt, all for 90-day deferred payments. SteelOrbis has learned that, in this week's Saudi Arabian domestic market, demand has remained low and the continuing slowdown in domestic demand coupled with Hadeed's price hike is exerting pressure on traders' local flat steel sales prices.
In the Saudi Arabian steel market,
HRC offers via traders for April and May shipments vary depending on the supply source. Ex-Thailand 1.2 mm
HRC offers to Saudi Arabia stand at $940/mt CFR for shipments in May, while offers from China for 2 mm
HRC stand at $810/mt CFR for April shipments. In the meantime, Egyptian 1.2 mm ex-stock
HRC offers for the Saudi Arabian market are at $870-880/mt CFR.
SteelOrbis has learned from market sources that Iranian flat steel producer
Mobarakeh is preparing to hold a new
HRC export tender. As SteelOrbis previously reported, last month the producer's
HRC export offers were standing at $740/mt FOB.
Generally speaking, buyers in the Middle Eastern and North African flat steel markets are reluctant to conclude new bookings, due to the uncertainty in the region, as well as the possibility of a price softening. And this is causing regional flat steel demand to slow down.