Middle East: Imported HRC offers drop w-o-w in recent deals

The Middle East hot-rolled coil (HRC) market witnessed price volatility this week as major suppliers, such as China, India, and Japan, revised their export offers in response to shifting global market conditions. These adjustments directly impacted import costs for Middle Eastern buyers.

Imported HRC offers from China to the Middle East (ME) remained range-bound w-o-w at $530-535/t CFR UAE, amid volatile SHFE futures. However, a deal of around 20,000-25,000 tonnes (t) was heard concluded at $525/t CFR UAE for late November-early December 2024 shipment.

HRC on China's Shanghai Futures Exchange (SHFE) rose by RMB 103/t ($10/t) w-o-w to RMB 3,590/t ($502/t) from RMB 3,487/t ($488/t) last week. However, d-o-d, prices fell by RMB 13/t ($1/t) from RMB 3,603/t ($504/t).

Moreover, imported HRC offers from India dropped by $10/t w-o-w to $560/t CFR UAE against $570/t CFR UAE following a recent deal. Notably, around 20,000-25,000 t of HRCs has been booked from India at $560/t CFR ME levels, sources informed BigMint.

Furthermore, Japanese HRC export offers to ME hovered at around $535/t CFR UAE, a decline of $10/t w-o-w as compared to $545-550/t CFR UAE last week. This decline in offers is attributed to competitive global offers and a recent deal of around 20,000-25,000 t at similar price levels.

Outlook

The Middle East HRC market is anticipated to exhibit volatility in the near future, driven by recent price fluctuations and shifting market dynamics. A potential decline in global economic conditions could lead to decreased demand for steel, including HRC, thereby affecting prices. Additionally, export restrictions or tariffs from major producers may disrupt global supply and demand.