Posted on 09 Apr 2025
The volatility caused by US President Donald Trump's statements and tariff implementation is being felt in the Gulf Cooperation Council steel market very obviously after the Eid Al Fitr holiday. The bloc’s galvanized coil market has fallen silent, Kallanish notes.
"People want to see how things will unfold. Trump's visit to the region [Saudi Arabia, UAE and Qatar] as early as May could bring clarity and may create new opportunities for the regional steel producers," comments a trader. "It is no secret that Trump aims to sell military equipment to the oil-rich countries in the region during his visit."
The anti-dumping and import duties imposed on various countries by the EU and the US, the leading import markets, have diverted trade to the GCC market, causing concern among some sources it has turned into a “dumping ground”. The most vigorous suppliers are the Japanese and Chinese mills. After Eid, the market is quiet and potential importers are in a wait-and-see mode, anticipating prices to fall.
This week, the region’s largest re-roller announced an inquiry for the purchase of 25,000 tonnes across multiple grades and thicknesses of HRC for shipment in the first half of June, to be delivered latest by mid-July.
Ex-China tier-one mills are offering A36/S235JR 2.8mm+ thick HRC at $495/t for early-June shipment, while the top-tier Chinese mill is offering 2.8-3mm SAE1006 at $520/t for mid-June shipment. The frontrunner Chinese thin gauge supplier is offering 1.2mm SPHT-1 at $545/t for May shipment. VAT-evading Chinese offers have disappeared from the market. Meanwhile, ex-Taiwan prices stand at $550/t for SAE1006 2mm amid the absence of Indian mills.
The latest deal from Japan for the same specifications was concluded at around $505/t for 15,000-18,000t before the Eid holiday, for early-June shipment. It has been reported that the Japanese major has enough allocation for mid- and late-June shipments after being subjected to a provisional AD duty of 31.8% in the EU for HR flat steel.
The re-roller’s enquiry is expected to close either with the Japanese or Chinese tier-one supplier at between $500-505/t for 2mm SAE 1006 grade, as suppliers have a strong appetite to sell particularly large lots in a single shipment.
All prices are based on cfr Dammam, Saudi Arabia, or Abu Dhabi or Jebel Ali, UAE.
Source:Kallanish
