Posted on 14 Jun 2023
Gulf Cooperation Council imported hot rolled coil prices are more or less unchanged from last week. Despite the upward trend in China, fundamentals are yet to improve, Kallanish notes.
Last week, a tube maker booked a Chinese tier-one mill’s 8,000-10,000-tonne composite cargo of silicon-controlled 1.8-7.4mm thickness S235JR and S275JR grades effective at around $585/tonne cfr Sohar for mid-July shipment. Late last week and this week, an Indian major, through a trading company, received orders for 2mm+ tube making and re-rolling grades HRC at an average price of $605-610/t cfr GCC for July shipment.
"Due to the lacklustre domestic demand in India, the Indian mill may slide its HRC export prices $10-15/t from $605-610/t cfr GCC,” comments a senior trading company official.
The Japanese frontrunner mill is observing better margins in South America and Europe, coupled with low bids from buyers in the GCC region against its initial offer for 2mm SAE 1006 grade at $590-600/t cfr GCC. It has thus reduced its initial allocation to the region for August shipment.
The Egyptian major is sold out for August and preparing to issue its quote for September shipments next week.
Re-rollers in United Arab Emirates have noted increased sales in the first 13 days of the month, particularly in the domestic market. G40/Z120 1mm hot-dipped galvanised coil prices are meanwhile prevailing at $820-840/t fob UAE or delivered within the UAE.
Due to their high inventories, HRC importers in Saudi Arabia have embraced the silence. Trading activity is subdued and not expected to speed up until after the Eid Al Adha holiday at the end of the month.
Source:Kallanish
