Some of the Europeans have started the holidays at the beginning of this week, while some of them have started the Christmas-New Year holiday season as of today. With regards to the difficulties seen in the finance markets, there are some people who think holidays are good for the markets. However, market players in particular stockists have been trying to diminish their stock levels before starting to purchase in general. On the other hand, movements can be seen in the Far Eastern markets especially.
As is known, Indian government have restrained the Indian traders and stockists to import in order to protect the inside mills, after China had removed export tax for certain flat products. According to this policy, only end-users are able to continue imports. Against the background of the offers given from China to India standing at high levels, the market players in India have given counter bids to purchase from CIS countries in particular. HRC offers from Ukraine to India are standing at the level of $430/mt CFR; however, it is heard that a sale has been concluded at a price level of $425/mt CFR.
Meanwhile, HRC bookings from Ukraine to China have this month started to be concluded, with demand is showing an increasing course in the Chinese domestic market. It is indicated that HRC bookings for tonnages of 100-150 mt are standing in a price range of $370-380/mt CFR. Meanwhile, there are offers given by Chinese traders to Ukrainian mills, while it is heard that there are also counter bids from Ukraine at the level of $405/mt CFR.
China and India have made purchases, whereas the UAE domestic market where demand is at low levels, have maintained its calmness. There is no change observed in the offer levels given to UAE market. Offers given from Thailand, Russia, Kazakhstan and southern Africa for HRC are at the level of $460-480/mt CFR.
The local prices for HRC in the Saudi Arabian market are at $500/mt ex-works, decreased from the level of $550/mt. Also, export offers for HRC are at the level of $500/mt FOB. At the stockists, especially the price levels of HRC have shown a decrease. Meanwhile, the prices of cold rolled sheets have remained almost unchanged as compared to the previous weeks due to low stock levels. On the other hand, Indian origin 0.8 mm 275 gr/m² zinc coated HDG bookings have been concluded at $610/mt CFR Dammam, whereas the same origin 0.65-0.70 mm CRC have been at $570/mt CFR Dammam.
The flats markets have shown some improvements with the purchases mentioned above. However, in general we will better able to observe future developments of the flats markets with the conclusion of European holidays. Meanwhile, developments that will be seen in the finance markets will show us the direction of the flats markets.