Middle East: Imported HRC offers from China decline w-o-w

• Indian offers to Middle East remain stable
  
  
• Export volumes from China, India increase
  
  

The Middle East steel market witnessed a significant decline in imported hot-rolled coil (HRC) offers from China. Prices dropped by $20/tonne (t) w-o-w to $530-535/t CFR UAE, compared to $550-555/t a week ago. According to a source, "18,000 t of Chinese HRCs were booked at $530/t CFR UAE for November 2024 shipment."

Additionally, HRC futures on China's Shanghai Futures Exchange (SHFE) fell by RMB 135/t ($19/t) w-o-w to RMB 3,487/t ($489/t) from RMB 3,622/t ($508/t) a week ago. Moreover, the same edged down by RMB 35/t ($5/t) d-o-d as compared to RMB 3,522/t ($494/t) a day ago.

Furthermore, imported steel volumes from China to the Middle East surged to 480,000 t in August 2024, representing an m-o-m increase of 90,000 t.

Japanese HRC offers to the Middle East hovered at $545-550/t CFR UAE. Japanese steel export volumes to the Middle East decreased to 42,250 t in August 2024, down by 21,198 t from 63,448 t in July 2024.

Meanwhile, Indian export offers to the Middle East remained relatively stable at around $570/t CFR UAE, with no firm deals heard concluded. However, steel exports from India to the Middle East increased to 50,467 t in September 2024 (projected volumes), representing an m-o-m rise of 2,193 t against 48,274 t in August 2024.

Outlook

The decline in Chinese HRC offers and SHFE futures suggests weakening demand and pricing pressure in the Middle East steel market. The market is expected to remain volatile, influenced by global demand and supply dynamics, Chinese economic policies, and Middle East infrastructure projects.