Posted on 20 Mar 2024
South Korean hot-rolled coil offers appeared in the Gulf Cooperation Council, which is subdued due to Ramadan.
Interactions and transactions in the bloc are at low levels, market sources report. Ex-China tier-two HRC offers for Q235 (S235jr) 3mm rose $14-15/t to $555-557/t cfr Jebel Ali from last Friday's $541-543/t cfr, while ex-China first-tier HRC offers are prevailing at $580-585/t cfr for base (3mm S235jr) for May loading readiness targeting April-end shipment, notes Kallanish.
This week, South Korean trading houses in the United Arab Emirates have been notably active in their pursuit of potential buyers, underscoring the market's competitive nature. One trading house, in particular, has put forward a $610/t cfr Jebel Ali quote for 2mm+ SAE 1006 HRC for May shipment, indicating a negotiable margin is available. In contrast, Indian 2mm SAE 1006 prices remain unchanged at $610-620/t cfr for April shipment.
"Due to muted demand in Southeast Asia and Europe, South Korean mills have finally remembered the GCC market as they rarely appear in the market once or twice a year," comments a trading source familiar with the matter.
A trading company concluded a deal for tier-two Q195 grade (SAE1006 equivalent) at $575/t cfr Jebel Ali for a 3 mm thick end-April shipment. Last week, the same Chinese mill's material was offered for May shipment but is now offered for April end loading. This shows that stocks are piling up, and sellers are under desperate selling pressure.
The major Chinese thin gauge supplier kept its price unchanged at $620/t cfr Jebel Ali for 1.2mm SPHT-1 grade, aiming for April-end shipment with LDS on 10 May.
Benchmark GI producers in UAE and Saudi Arabia offer 1mm Z120 at $880-890/t and 1mm Z275 GI at $1040-1050/t, respectively. Both quotes are based on delivered within the country. UAE's AGIS, the largest re-roller in the block, is planning a week-long maintenance shutdown in April combining it with the Eid holiday.
"It's important to note that the Chinese uptick attempts may not be sustained, as the fundamentals in China have not changed. Volatilities are expected to continue, but a rebound is highly unlikely until the Eid holiday in the second week of April," comments a sector participant.
Source:Kallanish
