China’s HRC (grades S235 and S275) export offers to Middle East (ME) rose by $5-10/t w-o-w for the week. The current offer’s around $580-585/t CFR UAE compared to $575-580/t CFR UAE, last week. The rise in offers can be attributed to improving market sentiments. Moreover, a deal of approximately of 15,000 tonnes (t) was heard concluded at similar price levels.
Shanghai Futures Exchange (SHFE) HRC futures remained range-bound on d-o-d basis at RMB 3,864/t ($534/t) on 21 May. However, the same increased by RMB 75/t ($10/t) w-o-w against RMB 3,789 ($524/t), a week ago.
Indian steel mills have continued to hold from issuing HRC export offers, due to limited export quotas and greater profitability in the domestic market.
Japan’s HRC export offers to ME are around $580-590/t CFR UAE. In addition, a deal of around 10,000 t was heard concluded at similar price levels for June shipments. Steel demand in Japan’s domestic market was sluggish despite promising new projects. Contractors are cautious due to shorter work hours and labour shortages.
UAE’s steel market is experiencing robust growth, fuelled by rising steel consumption in construction and infrastructure projects. “ME market is improving, but there is pressure on price,” informed a reliable ME-based source. Moreover, there are positive signs in Dubai’s real estate market, which continues to be resilient in 2024.
Outlook
Chinese export offers to ME have risen slightly due to improved market sentiment, while Japanese HRC offers are also in the similar range. A recent deal suggests some buying interest, but overall demand may be limited due to the ongoing instability and geopolitical issues in the region.