End-user demand in the UAE HRC market has remained sluggish, with Emirati buyers remaining reluctant as regards trading activity. Market participants anticipate that the slowdown in buying will persist since the extreme heat is delaying construction and also due to the approaching Eid holiday.
“Demand is weak and the high summer heat with the upcoming holiday are also keeping demand on the lower side,” a UAE-based re-roller told SteelOrbis.
However, in contrast to previous weeks, there has been some softening in HRC offerings, particularly from Chinese suppliers, as futures prices in China have dropped. Other suppliers, on the other hand, have taken alternative stances. While some Indian suppliers have kept offers stable week on week, Japanese and South Korean suppliers have remained silent in terms of offers to the GCC.
According to reports, this week ex-China offers for SS400 HRC for August shipment have decreased by $10/mt to $570-580/mt CFR UAE.
Meanwhile, some of the major Indian mills have stated that they will not provide HRC offers to the UAE, preferring to focus on the domestic market due to Emirati clients' lack of interest. However, several other Indian suppliers have continued to give HRC offers for August shipment to the UAE at stable levels week on week at $600-620/mt CFR.
“We have not begun supplying yet since the local market demand is strong, but we have heard that others are offering $600/mt CFR or higher to the UAE,” a representative of an important Indian mill told SteelOrbis.
