Posted on 22 May 2024
The hot rolled coil market in the Gulf Cooperation Council has fallen silent as most buyers have enough stocks in the United Arab Emirates. In contrast, Saudi buyers are holding minimum stocks and prefer small-volume bookings, mainly from the local producer, resulting in limited enquiries being floated in the market, notes Kallanish.
Last week, an enquiry from a tube maker translated into a deal through a trading house from a tier-one ex-China supplier for thicknesses at and above 1.8mm HRC base (3mm SS400/S235JR). This was done at $565/tonne cfr Jebel Ali for July shipment.
Notably, a reroller secured a deal from a top-tier Chinese supplier, underlining the significant role of Chinese suppliers in the market. The deal was for SAE 1006 2mm+ at $590-595/t cfr for late-June dispatching with last shipment date on 10 July for a 10,000-tonne lot.
This week, prices are unchanged as a major Chinese thin-gauge supplier is quoting 1.2mm SPHT-1 grade HRC from its ESP line at $615-618/t, and from its regular line at $585/t base for end-June/early-July shipment.
Rerolling grade (SAE 1006) 2mm thick HRC is quoted at $590-593/t for ex-China tier one mills, $600/t for ex-South Korea, and $605/t for ex-Taiwan, all for July shipment. Indian mills are still not showing interest in the GCC market, and there are no price indications for Indian material in the bloc.
All prices are based on cfr Dammam, Saudi Arabia, or Jebel Ali, UAE, port.
"We are seeing a significant slowdown in trading activity in the GCC. UAE stockists and tube makers have few enquiries with insignificant volumes, while Saudi buyers prefer to carry low stocks with monthly purchase bookings from the local supplier," says one trader.
Source:Kallanish
