The extent of uncertainties caused by the coronavirus emergency and the consequent lockdown worldwide has exerted strong pressure on prices for hot rolled coils (HRC) in the UAE.
Although Indian HRC offers have remained stable over the week at $465-470/mt CFR, Indian suppliers do not exclude that they might be forced to cut prices in order to generate sales as bids have been low. “The buyers are seeking to pay lower than $450/mt CFR, and if today it is totally unacceptable for us, tomorrow it might be the one opportunity to sell,” an Indian mill said. “People are discussing coronavirus issues more than the prices, with no clue where the world is heading,” another Indian producer told SteelOrbis describing the current situation.
According to sources, some South Korean suppliers have been testing the UAE market with offers at $475/mt CFR, with no demand reported.
The latest deals for ex-Ukraine HRC were closed at $475/mt CFR earlier. Currently, the seller is offering small coils at $470/mt CFR, with minor discounts being negotiable, SteelOrbis has learned.