Emirati buyers who purchased significant lots last week, mostly from China and Japan, and now have sufficient stock levels, have faced increased offers from China this week. Since futures prices have risen in China over the past week, suppliers have decided to raise their offers compared to last week. However, due to previous stocking, Emirati buyers are not keen to purchase and are reluctant to accept higher levels, considering the ongoing slow local demand due to seasonal effects.
“Demand in the local market is slow and Chinese mills are trying to push prices up, but UAE buyers are firm in negotiations and not accepting the higher levels, rather choosing non-VAT traders,” a source told SteelOrbis.
According to sources, China sold two different lots of SS400 HRC, around 10,000-12,000 mt and 25,000-30,000 mt, to UAE tube makers at $470/mt CFR and $478/mt CFR for August shipment, respectively. Meanwhile, this week’s offers for SS400 have increased to $480-490/mt CFR, up from last week’s $470-480/mt CFR for August shipment. Similarly, offers from non-VAT traders have also risen, to $470-475/mt CFR, from $460-465/mt CFR previously.
On the other hand, Japanese suppliers who sold 35,000 mt of HRC to two different re-rollers in the UAE at $480-485/mt CFR for August shipment have decided to keep offers at the same levels.
A similar price stability has been seen from South Korea and Taiwan, with offers remaining steady at $510-515/mt CFR for August and September shipments. No fresh offers or deals have been heard from Russia, whose previous levels were at $450-460/mt CFR for August shipment.
In contrast, Indian suppliers have decreased export prices to $480-500/mt FOB, which translates to around $515-535/mt CFR for August shipment, still considered high by UAE buyers, given that prices below $500/mt CFR are still possible from other origins.
