Posted on 20 Apr 2022
The Gulf Cooperation Council hot rolled coil market is extremely slow, and prices continue to slide. This week, HRC prices have softened $20-30/tonne, Kallanish notes.
Besides a 25,000t re-rolling [SAE 1006] grade deal concluded last week by a Far Eastern mill at $980/t cfr Abu Dhabi, for June shipment, there has not been any deal heard concluded in the United Arab Emirates. By the end of last week, Indian mills' re-rolling grade offers were heard at $1,015-1,025/t cfr UAE.
"Indian mills are back, and they are aggressive in the market, however, the market is silent and has no buying appetite," opines a source familiar with the situation.
This week in the UAE, pipe making S235JR grade offers of Indian mills heard at $995-1,000/t cfr UAE, for June delivery.
In Saudi Arabia, the Taiwanese 1.2 mm SPHT-1 grade HRC offer is heard at $1,030-1,040/t cfr whereas the Chinese mill's price dropped by $30/t on-last week to $1,010-1,020/t cfr Dammam. Tube makers in Saudi Arabia widely prefer Chinese material, when available, due to its price advantage.
"No one will pay a $30/t premium for non-Chinese material," comments a sector participant.
The region's (GCC) sole HRC producer, Hadeed, is examining the market to find workable prices for July deliveries. Hadeed is expected to announce its July delivery HRC prices before the end of April. For June rolling, Hadeed's price for re-rollers of 2mm+ SAE 1006 grade at $1,200/t cpt GCC, was found not workable and did not attract the re-rollers in the region.
Source:Kallanish
