Having seen the ongoing acceleration of the uptrend in the global hot rolled coil (HRC) prices, UAE-based customers have had no other choice but to accept higher prices. However, following the bullish stance chosen by most Indian suppliers recently, Emirati customers have found it more reasonable to resume negotiations with China-based suppliers.
Accordingly, SteelOrbis has learned that during the past week Emirati re-rollers booked about 28,000 mt in total of ex-China SAE1006B HRC at $780-785/mt CFR UAE. However, by the middle of the current week all sources, without exception, said that these levels were not workable any more. “Taking into account that ex-China 2 mm HRC is currently available at $770-775/mt FOB, CFR prices may be at $810-825/mt CFR, with freight to the UAE estimated at about $40-50/mt,” a source stated. “If ex-China HRC is booked today, the price will surely be anywhere within $800-810/mt CFR,” another source concurred. Ex-Taiwan HRC is currently offered at $800/mt CFR UAE.
In the meantime, most India-based suppliers have withdrawn their offers from the Emirati market, preferring to watch the development of the situation in their alternative export markets and, in particular, in their domestic market. “There are no offers from India for now. Most mills have stopped all negotiations due to the recent immense increase in prices,”a key UAE-based flats distributor commented. However, one India-based producer is said to already be in the market with offers at $830/mt CFR Abu Dhabi, for May shipment. The previous deals for HRC from India were done at the end of February at $740-750/mt CFR, as SteelOrbis reported previously.