- China’s HRC offers decline by $5/t w-o-w
- 20,000-t booked at $455-460/t from Russia
The Middle East’s imported hot-rolled coil (HRC) market remained sluggish this week amid ongoing geopolitical conflicts.
China’s HRC offers to the Middle East (ME) dropped by $5/tonne (t) w-o-w to $475-480/t CFR UAE against $480/t CFR last week. Meanwhile, ongoing geopolitical issues, along with competitive offers from other countries, may continue to keep Indian mills away from exports to the ME region.
However, HRC futures on the Shanghai Futures Exchange (SHFE) increased marginally by RMB 8/t ($1/t) w-o-w to RMB 3,092/t ($430/t) as compared to RMB 3,084/t ($429/t) a week ago. Moreover, on a d-o-d basis, the same remained range-bound.
A significant deal was finalised by a tube maker for approximately 20,000 t of HRCs from Russia at $455-460/t CFR UAE for July shipment. Moreover, another deal of 10,000 t from Saudi Arabia to a UAE-based re-roller was heard concluded at $550/t CFR UAE for July shipment.
Outlook
The Middle East HRC market is expected to remain volatile, primarily due to ongoing geopolitical tensions that could disrupt trade. Additionally, Indian exporters may continue to encounter challenges as buyers increasingly seek more competitive offers from alternative suppliers.
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