In light of the ongoing upward momentum of hot rolled coil (HRC) export prices from China, which has also driven price increases among other global suppliers, buyers in the UAE have adopted a cautious approach. Following earlier purchases from Chinese and Japanese suppliers, Emirati buyers have refrained from making any new purchases. Over the past two weeks, prices have gradually increased, while domestic demand in the UAE has weakened due to the seasonal slowdown during the summer months. As a result, many Emirati buyers have opted to monitor market developments before committing to further imports.
“Market demand is slow due to seasonal effects, while import offers have risen significantly in recent days. Therefore, there have been very few bookings at these elevated prices, as stock levels are currently sufficient,” a re-roller told SteelOrbis
Consequently, this week’s offers from China to the UAE for SS400 HRC have increased to $510-520/mt CFR for late August and September shipments, up from last week’s $495-505/mt CFR. However, according to market sources, some lower levels around $500/mt CFR may still be available, potentially from non-VAT suppliers.
Japanese suppliers have also followed the upward trend. After concluding some sales to the UAE in recent weeks at $490-500/mt CFR, current offers have risen by $10/mt, reaching $500-510/mt CFR for October shipments.
A similar upward movement has been observed from Indian suppliers. Current offers are now heard at $510-520/mt FOB, compared to $480-500/mt FOB the previous week. This equates to approximately $540-555/mt CFR in the GCC region for September shipments. However, given the relatively high pricing from all suppliers, the majority of Emirati buyers remain disinterested in ex-India offers and are reluctant to make any purchases.