Middle East: Imported HRC offers rise w-o-w amid recent deals

Imported hot-rolled coil (HRC) offers from China to the Middle East (ME) rose $5-10/tonne (t) w-o-w to $495-500/t CFR against $490/t CFR UAE a week ago. Prices rose amid a recent deal of around 10,000 t, which was heard to have concluded at $500-505/t CFR for early November 2024 shipment. Moreover, Japan's HRC offers to the ME were at levels similar to China's, ME-based sources informed BigMint.

Notably, China's Shanghai Futures Exchange (SHFE) HRC futures rose sharply by RMB 66/t ($9/t) before the holidays to RMB 3,211/t ($452/t) on 13 September from RMB 3,145/t ($443/t) on 10 September. Chinese participants were on holiday from 15 to 17 September on the occasion of the Mid-Autumn Festival.

Meanwhile, Indian steel mills continued to hold back export offers amid slow global market sentiments and competitive Chinese prices, as mills remained more focused on the domestic market. Japanese HRC export offers hovered at around $500/t CFR UAE.

Steel export volumes from Japan to the UAE in July 2024 stood at 63,448 t, a steep decline of 27,463 t from 90,911 t in June 2024, while China's steel exports to the UAE stood at 390,000 t in July 2024 against 400,000 t in June 2024.

Outlook

The ME market for imported HRCs is expected to remain relatively stable in the near future. Although Chinese prices have seen a slight uptick following recent deals, the market remains cautious overall. The return of Chinese market participants from holidays could provide additional clarity on future price trends. However, competition from China and the low sentiments may continue to limit significant price increases for imported HRCs in the ME.