Although the flat steel market in the United Arab Emirates (UAE) has not been very busy, prices have continued to rise.
Russian producer Magnitogorsk Iron and Steel Works' (MMK) offers for hot rolled coil (HRC) to the UAE market are at the level of $690-700/mt CFR Dubai, but these offers are considered to be on the high side by local market players. However, as SteelOrbis has heard, this producer intends to offer a discount of $10-15/mt on its prices in order to gain acceptance in the market.
In the meantime, HRC offers from Ukraine are at the range of $650-660/mt CFR, while Indian offer levels for the same products are at $675-685/mt CFR compared to $650-675/mt CFR last week.
On the other hand, the Chinese markets are still on their Spring Festival holiday. Upon their return from the holiday, it is anticipated that Chinese producers' offer prices will be lower than the offer levels from the abovementioned countries.
If demand gets stronger in the local market and if the import offer range remains at $650-700/mt CFR levels, it is expected that increased transaction activity will be witnessed in the UAE flat steel market in February.