Prices For Hot Rolled Coils in The Gulf Cooperation Council Are Falling, Especially For Those With Chinese Origin

The GCC’s regular buyers of Indian mills aren’t getting rates from them. The cost of HRC has dropped by $10–$15 per tonne this week compared to last.

A Chinese tier-one mill completed a re-rolling grade (SAE 1006) HRCdeal on January 29 for 15,000 tonnes at about $712–715/t cfr Dammam, for end-March shipment. A few days later, on February 2, an Indian tier-one mill finalized a deal for 2mm SAE 1006 grade HRC at a cost-plus-freight price of $740-750 for shipment in March. In the meantime, the Chinese tier-two mill reached an agreement on a mid-April supply of SS400 grade at 1.8-6.5mm thickness, effective at $710/t cfr Sohar, Oman.

An offer for 0.34-1.17mm cold rolled full hard (CRFH) from ex-China resulted in a contract for Marchshipment at about $690/t cfr Abu Dhabi.

Chinese HRC proposals, meanwhile, were heard this week at $665/t cfr GCC ports for 3mm SAE 1006 grade from a tier-two mill for mid-April shipment in the absence of offers from Indian and Japanese mills. In the meantime, a Taiwanese tier-one mill provided 2mm+ SAE 1006 grade for end-March shipment for $715/t cfr UAE ports.

At $780/t cfr Abu Dhabi, a deal for galvanized coils with ultra-thin gauges of 0.3–0.5mm and 1,220mm width was reached for only 1,200t.

A big Chinese mill (tier-one) has offered tube markers 1.2mm SPHT-1 grade HRC for $740/t cfr Dammam, while ex-Taiwan product is priced at $760/t cfr Dammam or Jebel Ali ports, both for end-March shipment. A trader with cargoes positioned in Chinese tier-two mills offered 3mm SS400 grade HRC for $660/t cfr UAE ports for shipment in March.

“The price increase is not being supported by demand in China and Europe. The fact that marine freight rates have drastically decreased is another crucial indicator. Traders intend to sell their position cargoes and mills at discounted rates since they realize that domestic demand in China will not revive in the short term after the New Year vacation, according to a trader who returned from the country last week.