Posted on 27 Apr 2022
The Gulf Cooperation Council hot rolled coil market is very quiet, with almost no enquiries heard released this week. One enquiry released last week was withdrawn by the buyer due to expectations of a price drop, Kallanish notes.
A Taiwanese mill was heard to have concluded mid-last week a re-rolling (SAE 1006) grade HRC deal for 7,000 tonnes at $950/tonne cfr GCC. Another Far Eastern mill meanwhile concluded at $960-965/t cfr GCC for 10,000t of same-grade material for July delivery.
Last week, a re-roller was heard releasing an enquiry for 12,000-15,000t of re-rolling grade HRC in anticipation of a potential delay to a previously ordered shipment from China, supposed to be shipped in May. However, the buyer retreated at the beginning of this week after it realised HRC prices are moving downwards.
In United Arab Emirates this week, a Chinese tier-1 mill's 2mm+ base grade HRC offers are heard at $930-940/t, whereas lower-segment mills’ offers are at $910/t, both cfr UAE. On the other hand, Indian mills’ initial offers, heard at $990-1,000/t cfr, were not workable for buyers.
Ex-China offers of A572 grade 50-20-25mm, 2-meter-wide hot rolled sheet (HRS) were heard at $950/t and hot rolled plate (HPT) at $970/t, both cfr UAE.
In Saudi Arabia, ex-China 1.2mm SPHT-1 grade HRC offers are heard at $1,000-1,010/t and 2mm SPHC grade at $940/t, both cfr Dammam.
"We don't hear end-user enquiries, not even a single bid,” comments a GCC trader. “Buyers wait for prices to be stabilised. After the Eid holiday, meaning from 8 May, we may see a clear picture of the market and start to receive enquiries from potential buyers.”
Sole GCC HRC producer, Saudi Arabia-based Hadeed, is expected to announce its July-rolling HRC prices in the second week of May. Company officials are understood to be closely monitoring the market and buyers' sentiment.
Source:Kallanish
