The price decline movement observed in the Middle East flats market has been causing great hesitancy among buyers as regards purchasing decisions. In addition, with demand currently at low levels in the Middle East flats market, buyers are remaining in wait-and-see mode and puchasing activity is weak.
The price levels of HRC offers from India and South Africa to the UAE have this week been at $600/mt CFR Dubai. While the HRC offers from China have been at $540/mt FOB, offers for API grades from China have been at $600/mt CFR Dubai.
Looking at the Saudi Arabian market, the price levels of HRC on ex-factory basis have this week declined by $50/mt to $750/mt due to the low demand levels.
The situation is no different in the Lebanese domestic market compared to the other Middle East countries. Due to the low demand levels in the local market, importers in this country are diffident in making purchases. The stock price levels of HRC, CRC and HDG in this domestic market are at $800/mt, $925/mt and $1,050/mt respectively. No interest is being shown in the Chinese offers in the market in question. However, negotiations are being carried out for the offers coming from European producers. As regards HDG of 0.5 mm with 100 gr/m2 zinc coating, the offers from Turkey, India and Egypt vary in a price range of $850-900/mt C&F Beirut.
In Jordan the HRC ex-stock price level is at $760/mt, while the CRC price level for ex-stock material is at $810/mt. It is reported that demand for flat products is weak in this country.
Meanwhile, a similar negative situation as regards demand levels is also seen in Iran and it is reported that some financial problems are being experienced in this country. At the moment, the price level of ex-stock HRC in Iran is at $780/mt, while the ex-stock CRC price level is at $970/mt. It is expected that Mobarekeh will announce its new price levels with a new tender next week.
In general, the tightening in demand levels in the Middle East flats market and the financial problems in this region have been restricting the activities of market players.