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

The Middle East steel market witnessed a significant decline in imported hot-rolled coil (HRC) offers from China, leading to pricing pressure for other exporters. Prices dropped by $10-15/tonne (t) w-o-w to $500-505/t CFR UAE from $515-520/t CFR UAE last week. This decline in prices can be attributed to slow trade activities in the region.

Additionally, HRC futures on China's Shanghai Futures Exchange (SHFE) fell by RMB 69/t ($9/t) w-o-w to RMB 3,354/t ($457/t) as compared to RMB 3,423/t ($467/t) a week ago. Moreover, on d-o-d basis the same edged down by RMB 18/t ($2/t) d-o-d against RMB 3,372/t ($460/t) a day ago.

Indian HRC export offers to the ME remained stable w-o-w, at around $535/t CFR UAE. Trade activities remained sluggish due to competitive Chinese pricing.

India's bulk HRC exports to the UAE in CY'24 stood at 1,98,456 tonnes (t) representing a drop of 563,44 t from 2,54,800 t in CY'23.

Outlook: Middle East steel market is likely to remain under pressure due to continued competitive pricing from Chinese HRC exports. The recent decline in Chinese HRC offers and SHFE futures suggests this downward trend could persist, further squeezing margins for other exporters like India.