Posted on 26 Feb 2025
Ex-China hot rolled coil prices have dropped by $5-7/tonne this week in the Gulf Cooperation Council, yet remain $15-20/t above re-rollers' target prices, Kallanish notes.
The major Japanese company, Nippon Steel, continues to dominate the re-rolling grade HRC segment. An enquiry released last week by a re-roller for 13,000 tonnes ultimately led to a deal this week for an increased quantity, of 17,000-18,000t, at approximately $505/t. This was for SAE 1006 coil with a thickness of 2-3mm, scheduled for early shipment in May.
Additionally, the largest galvanizer released a new inquiry for 25,000t of HRC and 10,000t of cold rolled full hard (CRFH) this week. Another galvanizer has pending inquiries for 15,000-18,000t of HRC, of which 5,000-8,000t are for delivery in April.
Initial offers for 2mm SAE 1006 grade HRC from the Indian major stand at $525/t for March shipment to selected customers only. The Taiwanese major is at $530/t for end-April/early May shipment, while the Japanese mill is at $515/t for May shipment. The top-tier Chinese offer is at $525/t, and tier-one Chinese mills are at $518-520/t for April shipment.
All prices are based on cfr Dammam, Saudi Arabia, or Jebel Ali or Abu Dhabi, United Arab Emirates.
The Saudi major is expected to announce May-rolling prices this week, with the market anticipating a rollover.
"The flats segment is exhibiting volatility, which is likely to persist due to the initiation of new anti-dumping measures or investigations that limit export markets, particularly for Chinese suppliers. The oversupply from China is contributing to eroding margins and declining prices,” comments a trader.
Source:Kallanish
