After securing substantial volumes from multiple sources last week, Emirati HRC buyers have paused further purchasing activity this week, opting instead to monitor market developments. According to market participants, most customers currently hold comfortable inventory levels and are taking a cautious approach to avoid building excess stocks. This hesitancy is further reinforced by the ongoing volatility of Chinese HRC prices, which has added uncertainty to near-term purchase decisions. Although some price softening has been observed, particularly in offers from Chinese and Indian suppliers, buyers remain reluctant to engage. With inventories still sufficient to meet short-term needs, most are in no rush to place new orders and continue to push for lower prices before considering future purchases.
“Trade activity is a bit slow. Customers have inventory and don’t want to hold excess stock as they approach the financial year-end in December. Also, Chinese price trends are unpredictable. Buyers know there’s no real demand, so they’re negotiating aggressively for the lowest possible numbers,” a major supplier told SteelOrbis.
As a result, Chinese suppliers have reduced their HRC (SS400) offers by $5/mt from last week, bringing prices to $500-510/mt CFR for November shipments. However, sources note that actual tradable levels are closer to $500-505/mt CFR, as UAE buyers resist higher prices.
Similarly, Indian suppliers have lowered their HRC offers by $5-10/mt, now standing at $525-535/mt CFR for November shipments. Indian mills have acknowledged the price drop but point out that bookings are slow, as competing offers from other origins remain more competitive.
Meanwhile, Japanese suppliers were able to conclude some sales last week at $510-515/mt CFR November shipments, but no new deals or fresh offers have been reported this week. Taiwanese suppliers also returned to the market last week, selling 10,000 mt of HRC for November shipment at $505/mt CFR UAE, though, like Japan, they have not made any new offers this week.
Saudi Arabian suppliers continue to offer HRC at $530-535/mt CFR for late October and November shipments. Although their delivery times are faster and logistics are more convenient, their pricing remains too high for most UAE buyers at this stage, and no deals have been finalized yet.
