Middle Eastern importers have booked around 40,000-45,000 tonnes (t) of hot-rolled coil (HRC) from Japan at $500-505/t CFR for end-July 2025 shipment. Chinese HRC offers stayed rangebound. On the other hand, Indian mills held to their offers to the Middle East, driven by competitive pricing and stronger domestic demand.
Notably, Japan’s steel exports to the UAE in March stood at 18,960 t, down sharply by 32,516 t m-o-m compared to 51,476 t in February.
Middle Eastern market sentiment remained subdued due to the ongoing summer season and weak demand from the housing sector. “The summer season has led to a reduction in construction activity”, said a source.
China’s HRC export offers to the Middle East remained rangebound w-o-w at around $480-485/t CFR UAE. HRC futures on the Shanghai Futures Exchange (SHFE) edged down by RMB 20/t ($3/t) w-o-w to RMB 3,206/t ($444/t) from RMB 3,226/t ($447/t) a week ago. D-o-d, demand marginally decreased by RMB 8/t ($1/t) d-o-d against RMB 3,214/t ($445/t).
Outlook
The Middle East’s steel market is expected to witness slow demand in the short term due to the ongoing summer season. However, a post-summer rebound is expected as construction projects resume, driving demand. Competitive offers, trade tensions, and global market trends will likely shape market dynamics and pricing.
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