Posted on 06 Dec 2023
Imported hot-rolled coil prices, mainly from China, are stable in the Gulf Cooperation Council. In the meantime, the region's sole producer, the Saudi mill, announced a $20/t increase in its February rolling domestic HRC price over January to $740/t delivered in the country for 3mm SPHC grade, notes Kallanish.
Tube makers in the United Arab Emirates released HRC purchase enquiries for a combined tonnage of almost 20,000 tonnes. A few Chinese mills are expected to book their January allocation this week. Japanese majors JFE and Nippon Steel are not offering February loading in the region due to strong demand pull from the automotive industry in Japan and better margins in the other destinations. FOB HRC offers (2mm S235JR grade) from the Indian mill at $645-650/t to the European market, equating to $690/t cfr Italy, Spain is higher than Chinese CFR prices in the bloc.
This week in the bloc, amid the absence of Indian and Japanese mills, first-tier Chinese mills are offering 3mm S235JR/SS400 at $600-610/t, 3mm SAE 1006 grade at $615-625/t for February delivery, while 1.2mm SPHT-1 grade is at $648-655/t cfr for January load readiness. On the other hand, offers from ex-China tier two mills for 3mm SS400/S235Jr grades were heard at $582-584/t for late January/February dispatching for 3-4,000t cargo, believed to be non-VAT paying.
Meanwhile, local traders offer ex-China tier-one pipe (SS400-S235JR) grade material $5-10/t below the Chinese tier-one mills' quotes.
All prices are based on CFR Dammam, Jebel Ali and Sohar ports.
In UAE Hot-dip galvanised coil prices, for 1mm Z120 GI, are at $870-880/t fob or delivered within the country.
"China's average liquid steel production in 2023 is 89 million tonnes per month, higher than the monthly averages of 84mt/m in 2022 and 86mt/m in 2021. The utilisation rates are high in China and will likely continue in January 2024.", comments a trading-side source."Looking at the Europe and US markets with recent HRC price increases, until January-end, Chinese HRC prices are not expected to soften."
Source:Kallanish
