Middle East: Imported HRC offers decline w-o-w in recent deals
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Imported HRC offers into the Middle East (ME) from China declined by $5/t w-o-w. While Indian mills continue to hold their HRC export offers to the ME due to higher domestic realisation, offers from Japan were heard this week. Trade activities in the region remained limited due to extreme weather conditions.
Chinese (grades S235 and S275) HRC export offers are ranging from $550-555/t CFR UAE. A deal of around 15,000 tonnes (t) was heard concluded at $550/t CFR UAE for late August shipments, informed a source.
HRC futures on the Shanghai Futures Exchange (SHFE) remained rangebound d-o-d at RMB 3,729/t ($513/t). However, the same inched up by RMB 21/t ($3/t) w-o-w compared to RMB 3,708/t ($510/t).
Japanese HRC offers to the ME are hovering around $555/t CFR, although no deal was heard concluded. HRC import offers from Taiwan and South Korea are around $580-585/t CFR UAE, sources informed.
Indian mills continue to hold HRC export offers to the ME due to higher realisations in the domestic market and competitive prices from other origins like Japan and China.
Outlook
Prices are expected to remain competitive due to continued aggressive offers from major suppliers like China and Japan. Competitive offers and the absence of Indian exports will likely push prices down. The recent increase in SHFE HRC futures suggests a potential rise in offer prices.
