Posted on 13 Sep 2023
Buyers in the Gulf Cooperation Council booked a combined cargo of more than 35,000 tonnes of hot rolled coil from Chinese suppliers towards the end of last week, notes Kallanish.
In the United Arab Emirates, through Chinese trading companies, 3-4 tubemakers each concluded deals for 5,000-7,000t, totalling 20,000t, at $577-$580/tonne cfr for 3mm S235JR silicon controlled material. At the same time, a re-roller closed a 15,000t parcel of ex-China primary quality 2mm+ SAE 1006 grade HRC at average effective $585/t cfr for end-October shipment.
Meanwhile, an Australian supplier was reported to have signed a contract for 20,000t of re-rolling grade at around $580/t cfr for November shipment.
The only HRC producer in the bloc, the Saudi mill, is offering 3mm SAE1006 grade at $630/t delivered against LC 60 days. It secured an order for 8,000t for November delivery.
An Omani tubemaker's 15,200t enquiry for 1.8-7.4mm thick SS400 and S235JR grades with a target base price of $570/t cfr, and a UAE re-roller's 10,000t enquiry for 2mm+ SAE1006 grade have yet to be converted into deals.
On a cfr Sohar, Jebel Ali or Dammam basis, this week in the GCC, with minor exceptions, initial HRC price offers from all origins increased by $10-15/t on-week. 2mm SAE 1006 grade HRC quotes from Taiwan rose to $605/t for mid-November and Japan-origin to $605/t for December shipment. Meanwhile, Chinese tier-one mills’ offers are pegged at $585-590/t base for early-November shipment.
After an almost one-year-long absence from the market, the Brazilian major has issued its 2mm SAE 1006 grade price at $635/t for November shipment, which is found unworkable by sector participants. Indian mills are still not in the market, benefiting from strong domestic demand and better margins.
Unchanged from last week, a Chinese major is quoting ESP-line 1.2mm SPHT-1 grade HRC at $625/t and base grade (3mm) at $592-$595/t, for early-November shipment.
"At the start of each week, Chinese mills raise their offers, and mid-week onwards they start to pull down to secure orders. Chinese domestic demand is weak and fundamentals have not changed. Artificial price hike attempts are unlikely to sustain," opines a sector participant.
Hot-dip galvanised coil prices in UAE for 1mm Z120 GI are at $830/t ex-mill, while 1mm Z80 is at $790/t ex-works.
Source:Kallanish
