Posted on 21 Sep 2022
Gulf Cooperation Council hot rolled coil buyers have been receiving increased price offers since the beginning of last week, but Chinese mills have maintained or even lowered some quotes by $10-15/tonne, Kallanish learns.
This week, 3 mm thickness SPHT-1 grade HRC is offered by a Japanese mill at $680/t, 2-3mm boron added SS400 from India at $650-655/t and SPHT-1 grade 2mm at $678/t and 3mm at $655/t by a Saudi mill. An ex-China tier-one mill offered multiple thicknesses of SS400 grade at $625-630/t cfr. All shipments are in November, and all prices are CFR GCC ports basis only; the Saudi price is DDU Oman or UAE. A full-hard cold rolled coil offer for 2-5,000t of 0.35-1.2mm thickness from a Chinese mill was heard at $650/t cfr GCC for November shipment, but it has not translated into a commitment.
Last week, a UAE re-roller released an enquiry for 25,000t of 2-3mm thickness SAE 1006 and SAE 1008 grades HRC targeting $590-600/t cfr Abu Dhabi for November shipment. The HRC offers received this week from Japanese, Australian, Taiwanese, Saudi Arabian, and boron-added Indian were heard at $630-655/t cfr. However, the buyer has not committed a deal since the offers are higher than their target price.
In Saudi Arabia, Chinese 1.2mm SPHT-1 grade HRC for November delivery is offered at $665/t cfr Dammam and $685/t cfr Jeddah.
"The Indian mills evaluate the market for price hikes, but unconventional suppliers to GCC change the game. But November delivery HRC prices are expected to be $20-35/t higher on-October delivery transacted prices at $620-630/t cfr GCC," explains a prominent source. "However, the demand is low in Europe, Turkey, the domestic market of India, China, and across the world, which is a constraint for the price increase. The price hike attempt may not sustain amid absent demand."
Source:Kallanish
