Posted on 22 Sep 2023
In the Gulf Cooperation Council, a major Japanese hot rolled coil supplier signed deals this week after opening end-November-shipment allocations. Chinese mills’ quotes were up $10/tonne on-week, with the JFE delegation’s visit to the region early last week sparking competition, notes Kallanish.
Early this week, Chinese tier-one mills increased their re-rolling grade 2mm thick prices to $595-610/t cfr GCC from $585-590/t cfr a week ago. Despite its attractive price offer at slightly below $585/t cfr GCC ports, JFE could not induce interest since the company could not offer earlier than mid-December shipment.
The other Japanese major has signed two deals for a combined cargo of 22,000 tonnes of 2mm+ SAE1006 grade at around $592-595/t cfr GCC ports, payable by LC on sight for late-November shipment.
A pipemaker concluded a deal with a Chinese supplier for 7,000t of silicon-controlled multiple, 2.9-12mm thickness S235JR grade at around $583-585/t cfr Jebel Ali for end-October shipment. Another buyer booked ex-China 1.2mm SPHT-1 grade at $605-610/t cfr to be distributed between its Dammam and Jeddah facilities, for a 14,000t parcel for end-October shipment.
Meanwhile, an unsolicited ex-China offer for 5,000t of 1.2mm SPHT-1 grade was heard at $610/t cfr Dammam for October shipment.
"Higher coking coal and iron ore prices are putting pressure on costs. Chinese HRC suppliers, which are resisting production cuts, are caught between costs and low domestic demand. I don't think prices will fall further as current tags are close to breakeven," says a senior official at a Chinese trading company.
Source:Kallanish
