Posted on 08 Dec 2021
In Saudi Arabia and United Arab Emirates, hot rolled coil prices have softened $25-35/tonne on-week to $835-845/t cfr, from $860-870/t cfr, Kallanish notes.
Over last weekend, two HRC (2mm+ SAE 1006 re-rolling grade) deals were concluded for a 25,000-tonne cargo at $835/t cfr UAE and for 15,000t of mixed sizes at an average price of $845/t cfr Dammam. These were for end-February delivery. A leading Far Eastern mill concluded the deals with leading local galvanizers in the two countries.
Despite Indian mill AMNS holding a lead time advantage of ten days over the Far Eastern mill, the January-shipment term and competitive offers of $835-840/t cfr won the latter supplier the business.
“The awarded mill has a unique product grade and sizes in its portfolio. It is preferred for being the sole supplier of these grades in addition to their quality preferences. The awarded mill goes for maintenance every February and September; that’s why they wanted to secure shipments to the MENA region. It has been assertive against the traditional HRC suppliers to MENA, Indian mills,” says a sector participant.
The region’s sole HRC producer, Saudi Arabia-based Hadeed, completed collecting inquiries for February deliveries. Delivered prices have been heard at $870-1,000/t, depending on the customer classification (re-roller, coil service centre, fabricator), tonnage and regularity.
Source:Kallanish
