Middle East: Imported HRC offers remain stable in recent deals

China's HRC (grades S235 and S275) export offers to the Middle East (ME) remain stable this week at $555-560/t CFR UAE. A deal of around 15,000 tonnes (t) was heard concluded at $555/t CFR UAE for August shipment, informed a ME-based source. "The current market is facing challenges due to increased shipping costs and softening demand," said a market participant.

HRC import offers to the ME from South Korea are hovering around $590-600/t CFR UAE.

Several Japanese steel mills have scheduled maintenance shutdowns in September. "There are currently no new inquiries for rerollers, and all existing orders are booked for shipment in August. No new sales from Japan until then are expected," hinted a source. Furthermore, "Japan's mills will start accepting orders from July end for October shipments," sources informed BigMint.

Additionally, Indian mills have continued to hold HRC export offers steady for the ME due to higher domestic realisation. Market participants in India are awaiting new domestic price announcements by the mills.

"Market activity in the ME has dipped this week compared to last week. This coincides with the arrival of summer, which typically witnesses a slowdown in trading. Additionally, Chinese prices remain flat, offering little movement compared with last week," said a ME-based market participant.

Outlook

The outlook for the ME market is mixed with summer setting in and limited trade activities. While no firm offers have been heard from Japan due to maintenance shutdown till end-July, they will start booking October shipments by July end, market participants predict. SHFE HRC futures increased by RMB 34/t w-o-w to RMB 3,764/t ($518/t) against RMB 3,730/t ($513/t), a week ago.