Posted on 07 Feb 2024
Gulf Cooperation Council imported hot rolled coil prices from China fell this week ahead of the Lunar New Year holiday starting on 9 February. Buyers observe volatility and negative sentiment in China and expect prices to trend slightly lower amid cost pressure, notes Kallanish.
End-March and April-shipment official HRC prices from Chinese tier-one mills for 3mm S235JR grade equivalent are at $605-610/tonne, with tier-two non-silicon controlled pipemaking grade at $580-585/t. Traders are heard offering position cargoes from Chinese tier-two mills for 2mm+ SAE1006 grade at around $615/t.
Meanwhile, Indian, Japanese and Taiwanese majors are holding their initial prices for 2mm SAE1006 grade at $640-655/t. There is a firm bid ready to close at $635/t from China, India and Japan, and for Taiwanese product at $640/t for April delivery. The market expects that Japanese major Nippon Steel will soon issue its end-April-shipment prices to the region, at $650-655/t, taking its price to Europe to $710/t cfr western Europe as a benchmark.
An unsolicited trader is offering 0.35mm+ cold-rolled full hard (CRFH) from a second-tier Chinese mill at $620-623/t for April delivery. The received prices verify the price difference between CRFH and HRC of $36-40/t due to in-process costs.
All prices are based on cfr Jebel Ali or Dammam ports, unless otherwise stated.
Saudi Arabia's sole HRC producer rolled over from March its domestic HRC price for April rolling at $760/t fob base (3mm SPHC grade) delivered nationwide.
The region's largest re-roller's HRC enquiry for 20,000-25,000 tonnes in various grades and sizes was committed to the Indian supplier last week at around $635/t cfr base for end-February/March shipment.
"The market is quiet as buyers are adopting a wait-and-see approach due to the volatility of Chinese futures. Buyers are splitting their monthly purchases into weekly orders to take advantage of price reductions, so that they don't get caught with higher average stocks or purchase prices if prices fall drastically," comments a sector participant.
Source:Kallanish
