Posted on 26 Nov 2025
Traders continue to short the hot rolled coil market in the Gulf Cooperation Council, Kallanish notes.
Last week, one trader secured several deals totalling around 30,000 tonnes of Q235B/SS400 HRC at $475/tonne cfr Jebel Ali.
This week, a Chinese trading house offered tier-one mill material for end-December shipment at an average of $487/t for A36 grade, 2,000mm width and 4-10mm thickness, which is believed to be a position cargo. However, another trading company offered 1,219mm width A36/S235JR grade material of 2.8mm thickness at $488/t.
As 2,000mm width incurs an additional surcharge, its price at below the normal-width cargo has confused buyers, making them believe prices are under pressure.
Meanwhile, the Japanese major is heard collecting enquiries for second-half February loading, with the initial base (2mm SAE1006) price heard by supply-side sources at $505/t and at $495/t from the buy side.
Senior officials from top-tier Chinese mill Baosteel visited the region last week. The mill cut its February-loading prices by nearly $8/t to $515/t for 2-2.49mm and $510/t for 2.5-3mm SAE1006. By contrast, a major Chinese thin-gauge supplier raised its 1.2mm SPHT-1 price to $542-543/t, while its rival increased its January price to $545/t. Nevertheless, all Chinese mills are seeking firm bids, suggesting negotiation margins remain open.
India’s major producer is still holding its $500/t price for second-half December loading for 2mm S235JR/SAE1006, but interest is limited as most buyers are covered until mid-February. Taiwan’s leading supplier has also left its offer unchanged at $505/t for 2mm SAE1006.
Trading activity remains subdued this week. Only a Jebel Ali Free Zone stockist is currently seeking a 10,000t HRC parcel of 2,000mm width.
Next Monday and Tuesday are national holidays in the United Arab Emirates, and re-rollers are expected to float new enquiries after returning to work later next week or the week after.
If otherwise not mentioned, all prices are based on cfr Dammam, Saudi Arabia, or Jebel Ali/Abu Dhabi, UAE. Prices on a cfr Jeddah basis are at $5/t higher.
Source:Kallanish
