Chinese hot-rolled coil (HRC) export offers to the Middle East (ME) have declined this week. Offers from the tier-1 mills fell by $20-25/t CFR to $570-575/t CFR, down from $590-600/t CFR last week. In addition, Chinese tier-2 mills also saw a decrease of $10-15/t CFR, with current offers hovering around $560-565/t CFR compared to $570-580/t CFR last week.
A recent booking of positioned cargo for around 10,000 tonnes (t) was reported at similar price levels.
On the other hand, Indian hot-rolled coil (HRC) exports to the Middle East fell by $10/t CFR w-o-w to $610/t CFR as against $620-625/t CFR, informed a source. However, no deal was concluded owing to price competitiveness from Chinese mills.
Factors influencing imported HRC prices
Chinese SHFE HRC recovers after last week’s drop: Chinese Shanghai Futures Exchange (SHFE) showed downward trend previous week, this decline is attributed to weaker macroeconomic indicators. SHFE HRC futures fell by RMB 99/t ($14/t) w-o-w to RMB 3,699 ($514/t) on 15 March 2024 against RMB 3,798 ($528/t) on 11 March 2024. However, the same increased on d-o-d basis by RMB 83/t ($12/t) to RMB 3,761/t ($522/t) as compared to RMB 3,678/t ($511/t) on 18 March 2024.
Slow market demand: Steel import prices in the UAE and Saudi Arabia are falling due to weak demand. Buyers are cautious, waiting for prices to stabilise before buying. They might be expecting even lower prices during Ramadan, which usually slows trade. The market also awaits new steel offers from India.
Outlook: China’s steel market has been sliding, although there are signs of a potential turnaround. Steel producer associations in major provinces have announced a coordinated effort to halt further price declines. This could mark a turning point for steel prices.