UAE-based buyers seek lower HRC prices

Wednesday, 24 October 2018 16:56:27 (GMT+3)   |   Istanbul

It is observed that no new import hot rolled coil (HRC) purchase in the United Arab Emirates (UAE) market has been made over the past week with demand being at very low levels. Due to sluggish demand, number of import HRC offers to the UAE has decreased significantly. SteelOrbis has been informed that UAE-based buyers have reduced their import HRC purchases significantly due to overstocking as well as the ongoing cash flow problems. Additionally, expectations of a further fall in international HRC prices have been causing UAE-based buyers to postpone their import HRC purchases.

Prices in the limited number of ex-CIS HRC offers to the UAE have continued their downtrend, declining by $12.5/mt week on week to $560-570/mt CFR. Meanwhile, Indian and Chinese HRC offers to the same destination are at $570/mt CFR and $585-590/mt CFR, respectively, though Chinese suppliers are reportedly willing to offer discounts. However, with demand being at very low levels in the UAE, buyers are considering these price levels to be on the high side, seeking for prices at $550/mt CFR.

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