Posted on 04 May 2023
Hot rolled coil buyers in the Gulf Cooperation Council are awaiting the end of the Chinese Labour Day and Japanese Golden Week holidays. HRC quotes are expected to be issued by Chinese suppliers on 4 May, and Japanese suppliers next week, Kallanish understands.
Last week, Chinese tier-one mills quoted 3mm base grade (SPHC) HRC at $630/tonne, 1.8mm+ SS400 at $645/t, 2mm+ SAE 1006 at $650/t and 1.2mm SPHC grade at $680-685/t. These are all for June shipment and on a cfr Jebel Ali (United Arab Emirates), Sohar (Oman) or Dammam (Saudi Arabia) basis.
However, Chinese tier-two mills' base grade offers are at $600-620/t cfr Jebel Ali, meaning the gap between tier-one and two has diminished. "This gap narrowing indicates the desperate situation is evident,” opines a sell-side source.
This week, updated prices from China and Japan could not be obtained; meanwhile, a re-roller in UAE floated an enquiry for 20,000 tonnes to be delivered within July. The deal is expected to be concluded after this week.
An Egyptian major meanwhile issued its July-rolling base grade HRC export price at $720/t fob.
The region's sole HRC producer, the Saudi mill, surfaced its July-rolling 3mm SPHC grade price at $760/t delivered within the country, a drop by $50/t on-month. The mill has invited enquiries, and customers in UAE and Oman are offered a special discount.
An Indian major is heard preparing to surface its June-shipment price for 2mm SAE 1006 or S235JR grade at around $675-680/t cfr GCC ports. This is however not expected to induce interest among buyers as their target price is $630-650/t cfr GCC, depending on the tonnage and shipment time.
"This week, not many transactions are expected to happen. Demand and enquiries are there. We expect large tonnages of bookings to be committed next Monday onwards," a trader says.
Source:Kallanish
