The UAE’s import hot-rolled coil (HRC) market is still under pressure from low end-user demand, specifically in the pipe and coated steel segments. In the meantime, over the past two weeks prices have seen a rather sharp drop in offers coming from Asia, attracting some interest. However, in early November the mood has changed due to a rebound in the Chinese market.
Earlier this week, the lowest offers for HRC in the UAE were coming from China at $540/mt CFR for SS400 grade and for December shipments. According to sources, some medium-sized lots were booked at this level, right before offers rebounded to $560-570/mt CFR. Two weeks ago, ex-China offers for the same steel grade of HRC were received at $620-625/mt CFR.
As for India, one producer has been offering at $580-600/mt CFR UAE depending on the tonnage, which is $40-50/mt below the levels in mid-October. Another large Indian seller is currently staying away from the market since the workable prices are low according to its evaluations.
Japan is currently offering at $585/mt CFR UAE for end-of-December shipments, versus $590-600/mt CFR two weeks ago. South Korea is out of the market for now as the main suppliers there seem to be already sold out for December.