UAE-based buyers of hot rolled coil (HRC) have recently faced some shortage of material. As a result, they have been forced either to search for alternative suppliers or to accept offers from traditional ones which are now quite high.
Accordingly, Indian steel mills, one of the key traditional suppliers, have lowered their HRC export allocation, in particular, to the UAE market, in favor of their local market which has better demand and, concurrently, more attractive prices. Random ex-India HRC offers in the UAE have been voiced mostly at $535-540/mt CFR. “We are very busy with orders domestically: hence, no discounts in export destinations are likely in the nearest days,” the representative of an Indian mill stated.
In the meantime, SteelOrbis has been informed of the most recent ex-Ukraine HRC booking, for 12,000 mt, at $505/mt CFR, and of a few small lots of ex-Russia HRC booked at $515-517/mt CFR.
Weak demand for finished steel in the UAE exerts a negative impact on the positions of HRC importers. “Business is tough these days due to the reduced availability of liquidity. Unfortunately, no boom in projects is expected in the nearest future,” one UAE-based source commented.