Posted on 22 Dec 2021
Hot rolled coil import offers into the Gulf Cooperation Council are at $800-830/tonne cfr Jebel Ali or Dammam; however, for firm bids, prices are at $780-795/t cfr. This is for 2mm+ SAE 1006 re-rolling grade for February shipment, Kallanish notes.
Taiwanese, Indian, Japanese, Korean, and Brazilian mills are competing to catch orders. However, buyers are reluctant amid the bearish market.
“A major Chinese mill has set its price far from market reality. They give a price but they show no eagerness to take an order,” opines a buyer.
The Brazilian mill has been the most assertive for getting orders, with the most competitive price level for February shipment. Despite the long lead times, it has concluded deals for re-rolling grade HRC.
Behind the Indian mills, who are frontrunners, Japanese and Taiwanese mills are taking the biggest portions of the GCC market.
Last week, 15,000 tonnes of re-rolling grade HRC was booked at $780-800/t cfr GCC for end-February shipment.
“We expect prices to inch down [further] and, before the new year, we expect to see quotations at $760-770/t cfr for February deliveries,” comments a GCC sector participant.
Indian mills are quoting pipe-making grades S235 and S275jr HRC at $805-815/t cfr for end-January deliveries.
The local HRC producer has offered an extra $50/t discount for 5,000-tonne deals, which reduces its price to $950/t cpt for 2mm+ SAE 1006 grade HRC for end-February deliveries.
Source:Kallanish
