Business activity in the UAE import flats market has further slowed down this week. The main reason is that the buyers, who had restocked earlier from several destinations, are now reluctant to purchase amid constantly rising import offers from Asia. In fact, only some hot rolled coil (HRC) tonnages have been booked recently, most probably by re-rolling companies.
According to sources, some medium-sized lots of ex-Japan HRC were booked last week to the UAE at $670-680/mt CFR for March shipments, while the new offers to the MENA region are at $690/mt CFR, SteelOrbis has learned. Earlier this month, ex-Japan offers stood at $620-640/mt CFR.
Indian suppliers have applied the most significant price increase for exports due to active overseas sales closed previously, returning demand from the EU, and some price increases seen in the local Indian market. The latest ex-India HRC offers to the UAE have been reported at $690-705/mt CFR, up by $40-45/mt over the week, for end-of-March shipments. China has already left the market for the holidays and has increased its indicative offers for SS400 HRC by $40-45/mt to $690-705/mt CFR, in line with the ex-India levels.
On the other hand, South Korea and Taiwan have reaffirmed their HRC offers to the UAE at $710/mt CFR and $670/mt CFR for shipments in March, respectively.
Although the activity in the UAE for the import HRC has been weakening, including end-user demand, still the overall market sentiment is positive so far. Most foreign suppliers are offering for March or are about to close sales for this month. In addition, the absence of China and the gradual improvement of demand globally is expected to support prices and they are foreseen to at least remain firm.
