The sluggishness in the Middle Eastern flats markets has continued this week as well. A downtrend has been observed in the offers for this country, in particular in ex-China offers. The approach of Ramadan is causing Middle Eastern demand to slow down. As for import materials, though ex-Russia, Ukraine and China offers are seeing a decline in prices, the slowdown in the Middle Eastern domestic markets is causing buyers to adopt a wait-and-see stance.
Moving to the United Arab Emirates, it may be said that local demand here is also soft. A declining trend has been seen in the offer levels compared to past weeks. On the import side, in general HRC offers to this region are all standing at about the level of $940-1,000/mt CFR Dubai for October shipment. On the other hand, it is heard that ex-China HRC offers for the UAE have started to drop to the level of $910/mt CFR Dubai for October shipment, down from the previous range of $1,020-1,030/mt CFR Dubai.
As regards Saudi Arabia, local demand for flats is active in this country. This week's domestic and export offers for November rolling stand at $1,140/mt, respectively on ex-works and FOB basis. CRC offers are hovering at higher levels compared to HRC. Ex-China HRC offers for Saudi Arabia are seen to be standing at around the same levels as the ones given to Dubai.
Meanwhile, a downtrend is also being seen in the Iranian flats market. While Mobarakeh has given its HRC export offers for September rolling at $1,000/mt FOB, the mill's sales price in the domestic market is at $925/mt ex-works. However, it is heard that lower prices can be found from local stockists.
In the Saudi Arabian domestic market, HRC prices are seen at $925/mt ex-warehouse.
All in all, flats demand in the Middle Eastern markets is registering low levels. Some sort of recovery may be seen in the Middle Eastern flats markets with the improvements expected following the end of the European holiday period as well as after the conclusion of Ramadan.