Posted on 25 Jun 2025
A major South Korean steel producer has begun probing the Gulf Cooperation Council hot rolled coil market with unsolicited offers, following strong inroads into South Africa and East Africa – at around $500/tonne cfr East Africa. The offers apply to 2mm SAE 1006 grade material for end-August/September shipments, Kallanish learns.
GCC market prices have remained broadly steady compared to last week. The current South Korean offer is reported at around $505/t for September shipment, with 50% of the consignment capped at 2mm and the remainder split between 2.5mm and 3mm sizes.
Unless otherwise stated, all prices are based on cfr (liner out) Dammam, Saudi Arabia, or Jebel Ali and Abu Dhabi, UAE. Payments are against LC at sight.
For the same specifications and size distribution, a Japanese major remains firm with initial quotes of $500/t and no size limitations or 2mm premiums. It is reluctant to negotiate below $490/t for early-September loading. Offers from a tier-one Chinese supplier are heard at $495/t for late-August loading (LDS 15 September), while a Taiwanese supplier is quoting $510/t for September shipments.
On the other hand, the Saudi major is still quoting $550/t delivered to the buyer's yard in UAE, with 30 or 60 days payment flexibility negotiable, subject to customer relations and parcel size (over 10,000 tonnes).
Meanwhile, pipemakers report that base – S235JR 3mm – offers from tier-one Chinese mills are hovering at $474-476/t for mid-August shipments, with sellers targeting late-July loadings. A leading Chinese thin-gauge supplier has priced 1.2mm SPHT-1 grade from its ESP line at $520/t for end-July shipments, with base material from its conventional mill at $480/t for August.
Russian HRC offers remain unchanged but buyers are known to favour Chinese material due to its consistency. The most recent agreement for Russia-origin HRC, signed two weeks ago, was said to be at $453-455/t for base material – 2mm S235JR/SS400.
Tensions have escalated following Iran’s retaliatory actions against the US in Qatar, prompting market participants to seek clarity on whether a lasting ceasefire and regional de-escalation will follow.
Adding to recent jitters, HRC shipments bound for Abu Dhabi, Jebel Ali, and Dammam were temporarily delayed last Monday while attempting to cross the Strait of Hormuz due to an alleged obstruction. The cargoes were able to proceed the following day, abruptly ending a short-lived buyer rally sparked by fears of a potential chokepoint disruption.
Source:Kallanish
