Middle East: Imported HRC offers from China drop by $10/t w-o-w amid recent deals

• HRC futures on China's SHFE drop by $4/t w-o-w
  
  
• Indian offers to ME remain steady at $560/t CFR
  
  

Imported hot-rolled coil (HRC) offers from China to the Middle East (ME) dropped by around $10/tonne (t) w-o-w to $520-525/t CFR against $530-535/t CFR UAE a week ago. Prices fell amid a recent deal of around 60,000 t, which was heard to have concluded at around $520-525/t CFR for late-December 2024 shipment.

Notably, HRC futures on China's Shanghai Futures Exchange (SHFE) dropped by RMB 32/t ($4/t) w-o-w to RMB 3,487/t ($481/t) on 20 November from RMB 3,519/t ($486/t) in the previous week. However, on a d-o-d basis, SHFE HRC futures inched up by RMB 12/t ($2/t) against RMB 3,475/t ($480/t) on 19 November.

Meanwhile, Indian HRC export prices to the ME remained stable for the week at $560/t CFR, as per sources. Competitive offers from China weighed on Indian exports.

Taiwan's HRC offers to the ME hovered at around $540/t CFR this week. A deal of around 40,000 t was heard concluded at similar price levels for late-December 2024 shipment. Meanwhile, offers from Japan were in the range of $535-540/t CFR.

Outlook

The ME HRC market is currently witnessing a downtrend in prices due to competitive Chinese offers. However, the market remains volatile amid fluctuations in global economic conditions, geopolitical tensions, and changes in demand and supply dynamics. While Indian exporters have maintained stable offers, they may need to adjust their pricing strategy to remain competitive in the face of declining Chinese offers.