- ME construction sector demand surges
- Chinese HRC offers remain stable w-o-w
The Middle East’s (ME) imported hot-rolled coil (HRC) market saw a surge in competitive offers with Indian mills resuming exports coinciding with a rise in Chinese offers. According to a source, “Manufacturers and stockists in the ME are restocking, driving an increase in demand”. Another reliable source said, “Demand in the ME remains stable, with end-users consistently buying and the construction sector seeing healthy project execution”. Fuelled by a steady pace of end-user purchases and robust project execution, the construction and infrastructure sectors are experiencing continuous growth.
Indian HRC export offers to the Middle East are ranging between $525-535/t CFR UAE, with a recent deal concluded at similar levels for around 25,000 tonnes (t) for September shipment to a UAE-based tube-maker and re-roller.
In July, India exported 15,497 t of steel to the UAE, up by 7,324 t m-o-m as compared to 8,173 t a in June. However, y-o-y, exports fell sharply by 29,341 t or 65% y-o-y against 44,838 t in July 2024.
Chinese HRC offers to the ME remained stable w-o-w at $515/t CFR UAE. Notably, a tube-maker concluded a deal of around 25,000 t at $512-514/t CFR UAE from China.
HRC futures on the Shanghai Futures Exchange (SHFE) dropped by RMB 42/t ($6/t) w-o-w to RMB 3,390/t ($472/t) as compared to RMB 3,472/t ($478/t) a week ago. However, d-o-d, contracts stayed stable.
Outlook
The Middle East’s imported HRC market is poised for continued growth due to ongoing construction and infrastructure projects. While the market remains highly competitive, with Indian and Chinese mills offering attractive prices, strong demand will ensure stable supply and steady trade flow. This dynamic, where competitive pricing meets solid demand, will likely keep prices stable in the short term.
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