Posted on 24 Mar 2022
In the Gulf Cooperation Council hot rolled coil market, Chinese mills have raised their price offers for 2mm+ thickness re-rolling grade (SAE 1006) HRC by $10-15/tonne on-week.
Quotes are now at $1,015-1,020/t cfr GCC for May rolling, boosted by high demand amid the absence of competitive offers from other countries, Kallanish understands.
Last week, a deal was concluded for SAE 1006 HRC for 20,000 tonnes of multiple thicknesses all above 2mm at an average price of $990/t cfr GCC for May shipment. 2mm+ thickness equates in this deal to $1,000-1,010/t cfr. The material will be rolled by China's Benxi Steel.
Also, a combined 20,000t re-rolling grade Baosteel HRC position cargo was heard sold by a trader to two buyers at $970/t cfr for May shipment, to be split equally between Damman and Abu Dhabi ports. This could not however be confirmed by deadline.
This week, initial Chinese HRC offers are at $1,020/t cfr, of which 2mm+ thickness comprises 40% of the total quantity. Lockdowns in China, which have hit domestic consumption, may however soften the price for a firm bid to $985-1,000/t cfr, according to sector participants.
A deal was confirmed on Wednesday for 10,000t of 2.7-6.55mm thick SS400 grade Chinese HRC at $985/t cfr Sohar, Oman for May shipment.
In the absence of Japanese HRC offers this week, major Indian mills’ price offers have surfaced for re-rolling grade HRC at $1,130-1,160/t cfr GCC, whereas the Taiwanese offer is heard at $1,030-1,045/t cfr for May shipment. Market participants expect to receive Nippon Steel's offers soon, from which the initial SAE 1006 grade HRC quote is expected at $1,150-1,160/t cfr for June shipment. For firm bids, however, a $30-50/t discount could be agreed.
"I would never pay $140/t more for the same material,” comments a senior mill official. “This week, we hear Indian HRC offers at far from workable prices. Chinese material is known here, particularly Benxi and Bao Steel's HRC have good references.”
A Taiwanese mill was meanwhile heard concluding a deal for less than a 1,000t parcel of 2.8mm G90 grade hot-dip galvanized coil at $1,335/t cfr Dammam for June shipment.
The GCC's sole HRC producer, Saudi Arabia’s Hadeed, is expected to announce its June-rolling price offers next week. According to rumours, a $100/t increase is highly probable also Hadeed received HRC bids from Europe for base grade SPHC grade at $1,200/t fob
For May deliveries, Hadeed quoted 2mm+ thickness SPHC and SAE 1006 re-rolling grade HRC at $920-940/t cpt for re-rollers in the GCC. For the domestic market, the same material was offered to service centres or downstream fabricators at $1,015/t and 3mm+ product at $990/t, all delivered within the country.
Source:Kallanish
