Posted on 13 Mar 2024
Gulf Cooperation Council buyers have reduced their hot rolled coil bids after ex-China tier-two mills cut prices to $555-560/tonne cfr for April shipment, equivalent to $525-530/t fob China.
Tier-one mills are holding at $590-595/t cfr GCC for 3mm pipe-making grades (SS400, S235JR) for May shipment. Chinese tier-one mills are welcoming any bids from serious buyers to negotiate, notes Kallanish.
The market is however quiet, which is typical of Ramadan, and due to the price slump in China. Buyers are keen to book only small volumes to avoid high inventory costs.
Last week, a Saudi buyer booked 3,000 tonnes of SPHC grade from a Japanese major in multiple thicknesses from 1.8mm at an average of $620/t for May shipment. Tube makers and stockists in the United Arab Emirates booked a combined tonnage of 6,000t of ex-China Tier 1 SPHT-1 grade 1.15mm at $633/t and 2mm at $605/t for late-April delivery.
The Indian major is holding its tube mill grade at $620/t, while the newcomer is at $10/t lower to attract buyers for April delivery.
This week, the tier-one Chinese supplier’s 1.2mm SPHT-1 grade is at $630/t, while competing Chinese suppliers are hovering at between $621-626/t for April delivery.
All prices are based on cfr Dammam or Jebel Ali ports. Cfr Jeddah prices are $14/t higher than Dammam quotes.
"Ex-China tier-two HRC prices have been dropping like crazy. We couldn't even catch up with the new prices," says one trader, "I think prices here would stabilise and not move up or down due to cost pressures."
Source:Kallanish
