Posted on 19 Apr 2023
Chinese mills' hot rolled coil prices are currently seen flattening in the Gulf Cooperation Council market; however, traders who have position cargoes are offering at $10-20/tonne lower than the mills.
In the last ten days, amid the absence of Indian mill offers in the bloc, buyers booked mainly Chinese HRC. Still, the Japanese major concluded deals for substantial volumes of re-rolling grade and small tonnages of tube-making grades at very competitive prices, $680-690/t cfr Jebel Ali against LC at sight basis, for June shipment, Kallanish notes.
At the end of last week, a tube maker in Oman booked 10,000 tonnes of Chinese tier-one SS400 grade HRC through a trading company for multiple thicknesses from 1.8mm to 7.4mm. The deals were at an average price of $660/t cfr Sohar for late May/early June shipment. This deal price was perceived as reasonably competitive and offers have neither rebounded nor softened this week. An Indian major's offer to a tube maker at $720/t cfr Jebel Ali was found unworkable despite its shorter lead time, with shipment in May.
This week, the Chinese tier-one mill's initial offer for 1.2mm SPHT-1 grade is at $710-715/t and 2mm at $675/t for June shipment, whilst ex-South Korea S235JR and SPHT-2 grades are at $680/t for July shipment, all cfr Jebel Ali port. A potential buyer received an unsolicited offer from a Chinese trading company for 2mm SAE 1006 grade at $680/t cfr Jebel Ali for May shipment. A tier-one mill in China produced the material. When concluding deals, sellers typically compromise $10-15/t depending on the tonnage.
"Major Indian mills are still not offering in the GCC market, but buyers are receiving base-grade Chinese, Japanese, and South Korean primary material at around $680-690/t cfr GCC ports for June/July shipment. The price fall in the Chinese domestic market stopped last Friday and rebounded this week by $5/t versus last Friday, but Chinese HRC export prices are unchanged,” says a Chinese trading company official based in Dubai.
Observing the last week of Ramadan, most buyers are on vacation and trading activity has slowed in the bloc. After the imminent Eid holiday, when work resumes next Monday, buyers are expected to surface their enquiries and conclude deals within the same week.
Source:Kallanish
