Posted on 21 May 2025
The hot rolled coil market is quiet in the Gulf Cooperation Council, with enquiries subdued, but prices are mostly stable. This has been the case in the last three to four weeks.
An Indian steel major has returned to the market, but its re-entry in the GCC has been marked by uncompetitive pricing. The company is offering 2-3mm SAE 1006 grade at $590/tonne cfr Abu Dhabi (liner out) for July delivery. By contrast, the Saudi mill is quoting the same grade at a more competitive $570-575/t delivered to the buyer's yard in United Arab Emirates, with 50% of the volume comprising 2mm thickness. Both Indian and Saudi offers are for July rolling and delivery, Kallanish notes.
However, both origins are found not attractive by buyers as they are receiving $50-90/t lower offers from other suppliers. Chinese and Japanese suppliers still seem dominant.
Last week, two re-rollers booked for a combined tonnage of 40,000 tonnes from the Japanese major at $495-498/t cfr Abu Dhabi port for end-July shipment. This week, another 12,000t of re-rolling grade HRC enquiry has been floated.
Initial pricing from Chinese tier-one mills this week was at $490-495/t for end-July load readiness for 3mm base (S235JR), and at $507-512/t for 2mm SAE 1006 grade. For 2mm SAE 1006 grade, the top-tier Chinese mill is offering at $522/t for early-July shipment, equating to $485/t fob China.
A major Taiwanese producer has priced its August shipments at $525/t. The Japanese supplier has not officially release quotes but is mulling to enter the fray with a $505/t quote for early-August loading for 2mm SAE 1006.
Meanwhile, 1.2mm SPHT-1 grade from the Chinese tier-one mill remains steady at $530/t for early-July shipment.
Unless otherwise mentioned, all prices are based on cfr (LO) Jebel Ali, Abu Dhabi ports in UAE, or Dammam, Saudi ports basis.
Buyers in the GCC are pushing back, aiming for $10/t below current supplier offers, leveraging weak demand, persistent oversupply, and a generally bearish market sentiment.
Source:Kallanish
