Posted on 10 May 2023
Hot rolled coil buyers in the Gulf Cooperation Council have concluded deals after re-rolling and tube-making grade cfr GCC prices settled at $625-635/tonne for July and $640/t for June shipments, Kallanish notes.
An Indian major is still targeting $15-20/t more than the market price for June deliveries, given its short lead time advantage, with the sea voyage lasting only 3-5 days.
At the end of last week, ex-India tube-making grade (S235JR) HRC sales were concluded by a trading company for multiple thicknesses at an average price of $637-640/t cfr GCC for June shipment. Meanwhile, a combined 5,000 tonnes of 1.8-7.4mm thickness majority S275JR and S235JR grade were booked at an average effective price of $650/t cfr for end-May shipment.
This week, an unconventional Japanese and South Korean major issued prices, each at $670/t cfr for June shipment and end-July/August delivery, respectively. However, their quotes are almost $40-50/t above concluded deal prices.
An enquiry for multiple re-rolling grades SAE 1006 and SAE 1008 for a combined tonnage of 20,000t for late-July delivery has translated into a deal at an average price of $630/t cfr Abu Dhabi. The Far Eastern supplying mill recently floated its initial July-shipment price at $640/t cfr GCC ports and bagged the order, close to Chinese tier-one mills' quotes.
Ex-Taiwanese 2mm+ SAE 1006 grade is heard offered at $635/t cfr for July shipment. A trader meanwhile made an unsolicited ex-China HRC offer for silicon controlled (0.04% max) 2mm-12mm thick SAE 1006 and 1.8-12mm SS400 grades at $600/t cfr GCC ports, for June shipment.
Chinese major mills reduced their 1.2mm SPHT-1 grade price offers to $660-670/t cfr GCC ports for June shipment.
"Deals concluded towards the end of last week and this week brought some excitement in the market," says a sell-side source. "We see a slight improvement in Chinese futures this week, which makes us believe the price fall would stop. However, considering the newly imposed import duty on HRC products in Turkey, HRC exports [into Turkey] will see a drastic fall which would put Chinese mills particularly under pressure."
Source:Kallanish
