Trade activities and end-user demand in the UAE’s hot rolled coil (HRC) market have continued to slow down with the arrival of Ramadan month. In the meantime, a certain interest in the import offers from China is there, taking into account that some suppliers are there to deal at a rather aggressive price level. According to sources, the falling futures and a further weakening of the local market in China are the main reasons for such a policy.
As a result, the ex-China HRC offers to the UAE have decreased over the week, but they vary in a rather wide range depending on the supplier. Some of them have decreased their offers by $20-40/mt to $680-710/mt CFR for May shipments. In the meantime, at least one of the mills has been reportedly offering Q235B HRC of 2 mm and above at $665-670/mt CFR for the same shipment term. Sources believe that some negotiations with China might result in deals shortly, taking into account the offers are significantly lower than the competition, namely India. Last week, there were even more aggressive price levels from China in the market, though for a rather specific product. According to sources, there was a deal for 5,000 mt of Chinese HRC with unverified silicon content at $655/mt CFR.
India’s HRC offers for May and June shipments have been set this week at $745-750/mt CFR, $5/mt down over the week. However, the volumes available from India to the UAE are considered limited, taking into account the mills remain concentrated on European market, where the business activity is better and the workable price levels are higher.
Meanwhile, South Korea has decided not to offer to the UAE because of greater allocations in other destinations, so it's currently offering $800/mt FOB for May and June shipments, which is equivalent to $850/mt CFR to UAE based on $50/mt freight.
