- Summer slowdown, geopolitical tensions weigh on market
- Chinese HRC offers remain rangebound w-o-w
The Middle Eastern (ME) market for imported hot-rolled coil (HRC) witnessed prices remaining rangebound prices w-o-w in recent deals. The ongoing summer slowdown and prevailing geopolitical tensions weigh on market sentiments.
A source informed BigMint: “The summer months typically bring about a slowdown, which is likely to continue in short-term”.
Despite the summer slowdown, some transactions from China and Japan have been finalised. Meanwhile, Indian mills are absent from the Middle Eastern market, likely due to stiffer competition from other suppliers offering more attractive prices.
Chinese HRC offers to the Middle East remained range-bound w-o-w at $475/t CFR UAE. Notably, a tube-maker in the ME has booked a shipment of around 30,000 t at $470/t CFR UAE. Moreover, another deal of approximately 12,000 t was heard concluded at $478/t CFR UAE.
HRC futures on the Shanghai Futures Exchange (SHFE) for October increased by RMB 31/t ($4/t) w-o-w to RMB 3,193/t ($445/t) compared to RMB 3,162/t ($440/t) a week ago. Moreover, d-o-d, the same edged up by RMB 6/t ($1/t) from RMB 3,134/t ($437/t).
Meanwhile, Japan’s HRC offers to ME stood at $480-485/t CFR UAE, ME based two re-rollers has booked shipments of 35,000 t at similar price levels for end -August and early-September.
In contrast, Indian mills have continued to hold flat steel to the UAE, primarily due to more competitive offers available from other regions.
Outlook
The short-term outlook for the Middle Eastern HRC market is stable, with ongoing summer slowdown and geopolitical tensions influencing demand. Market activity from China and Japan is expected to persist, while Indian mills remain on the sidelines.
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