Posted on 10 Aug 2021
Despite cheaper imported hot rolled coil prices offered in Saudi Arabia, local producer Saudi Iron & Steel Company (Hadeed) has rolled over HRC prices this week, local sources tell Kallanish.
SAE 1006 re-rolling grade 3mm and up HRC is at SAR 4,087.5/tonne ($1,090), while 2mm product is at SAR 4,162.5/t ($1,110) delivered within Saudi Arabia for October delivery.
3mm and up SS400 grade HRC is at SAR 4,162.5/t ($1,110), while 2mm product is at SAR 4,237.5/t ($1,130) delivered.
Indian mills are quoting SAE 1006 grade 2mm and up HRC at $965-980/t cfr Dammam but are expected to sell at $965. Chinese mills are quoting the same specifications under the same delivery conditions at $1,020-1,035.
The prices exclude 15% VAT, which must be paid on sales in Saudi Arabia.
Clearance and transportation cost within Saudi Arabia comes to SAR 75/t ($20). There is a customs duty of 12% on HRC imports since July 2020, unless the importer has an exemption.
Market participants expect Hadeed to close deals this week at around SAR 200/t lower than quotes, based on agreements with buyers. These stipulate that the discount is given to buyers if they exceed 80% of the purchase quota.
Quotes for JIS G3131 grade 1.2mm thick HRC from China are heard at $1,100/t cfr Dammam, whereas the same grade from Egypt is pegged at around $1,148/t cfr.
A buyer in Oman is also reported to have purchased 10,000 tonnes of 1.4-5mm thick HRC of S235/S275JR grades at $975/t cfr Sohar over the weekend.
Separately, in Iran, prices of 2-3mm HRC of an Iranian standard close to SS400 grade are at IRR 234,862/t ($776/t), excluding 9% VAT, delivered within the country.
Source:Kallanish
