Quieter week in the Middle East flat product markets

In the Middle East flats market, offer levels have continued to increase but responses to the prices vary depending on the country. In some countries, despite the newly increased price levels, buying activities has continued, whereas in other countries a slowdown has been seen.
 
For instance, Egyptian mill EZDK has started to offer at higher levels for August delivery. While EZDK's recent HRC offers to the Middle East were at $770/mt FOB, the producer started to test the level of $800/mt FOB as of last Saturday. Moreover, it is heard that EZDK has concluded transactions with Saudi Arabia at increased levels for 1.2 mm HRC. Meanwhile, offering to Europe at $775/mt FOB, EZDK has had counter offers at the levels of $760/mt FOB.
 
Offers to Saudi Arabia given from both Egypt and the Far East have been on a rising trend, while demand in the Saudi domestic market has remained active, resulting in transactions at $800/mt FOB for HRC from Egypt. Saudi Arabia has appeared to be the market in the Middle East most willing to accept the price increases.
 
Stockists in Tunisia have not appeared ready to accept the increased prices. Due to low end-user demand, until they receive offers for ready stock materials, the Tunisian stockists hold the view that the price offers for new production are on the high side. They are not inclined to purchase as they are not able to fully reflect these increases in their local market.
 
Russian mill MMK's flats offers to Tunisia have been standing at the levels of $760/mt CFR for HRC and at $860/mt CFR for CRC. Traders' offers for Severstal and NLMK production material are above $800/mt for HRC and above $900/mt for CRC - both for 120-day deferred payment. Libyan producer LISCO has also increased its export offers for HRC to the level of $735/mt FOB.
 
Generally speaking, a cautious approach to the price increases can be seen in the Middle East and, as mentioned in our previous analysis, due to the weakened demand in the Middle East when the summer comes, buyers prefer to purchase with short lead times.