Posted on 09 Mar 2022
In the Gulf Cooperation Council hot rolled coil market, Chinese mills are very active amid the absence of Indian and Japanese offers for nearly two weeks. The European market is attracting Indian, Japanese and Taiwanese HRC producers with lucrative price levels after CIS supply disappeared amid the war in Ukraine, Kallanish notes.
“We are oblivious to Indian and Japanese HRC prices. Only Chinese HRC offers are circulating. The European market is more lucrative. All the major Indian and Japanese mills are concentrated on that market,” explains a GCC market participant.
This week, Chinese mills’ 2mm+ SAE 1006 grade HRC prices are at $1,010-1,020/tonne cfr Dammam/Jebel Ali. A Chinese mill sold consecutive quantities of 0.35-1.8mm thickness full-hard cold rolled coil, with the initial sale at $1,030/t cfr and the last at $1,003/t cfr UAE for May shipment. The prices reflect a good relationship between supplier and customers, sources observe.
Chinese mill Rizao is also heard offering 1.2mm thickness SPHC grade HRC to pipemakers at $1,080-1,090/t cfr UAE and Saudi Arabia, and at $1,100/t cfr Aqabah, Jordan for end-April/early-May shipment.
Major re-rollers’ HRC inquiries for 25,000 tonnes and 15,000-20,000t are expected to be issued this week. Indian and Japanese mills are assessing quotes since they have been non-active in the market.
Japanese and Indian HRC offers are expected to be pegged at $1,050-1,100/t cfr for May shipment/June arrival, whereas Chinese prices will be at $1,010-1,020/t cfr. Not all Indian mills will issue offers.
“This will be an opportunity for the Chinese mills to gain market share, after they were absent from our market since the middle of last year. Concentrating on Europe and underestimating the GCC market will have consequences without doubt,” says a GCC source.
The region’s sole HRC producer, Hadeed, is heard to be booked for May rolling and not accepting new inquiries.
Hadeed quoted 2mm+ thickness SAE 1006 re-rolling grade HRC at $930-945/t cpt for clients in UAE and Oman. For the domestic market, the same material was offered at $1,000-1,015/t and 3mm+ product at $980-990/t, all delivered within the country in May.
Source:Kallanish
