This Week Is Quiet On The Hot Rolled Coil Market in The Gulf Cooperation Council

A re-roller purchased 10,000t of HRC in the SAE 1006 and SAE 1008 (re-rolling) grades from a Japanese firm last week for $730/t cfr Jebel Ali against a 90-day LC. This comes to $705–710 per ton cfr LC paid at sight.

The Japanese multinational ceased selling HRC in the GCC market this week and is getting ready to float its new offers for end-May shipments. This will occur in late March or the beginning of April. 

A Chinese tier-two factory made a price offer to a tube manufacturer for 3mm+ S235JR grade at $720/t cfr Jebel Ali for shipments in late April or early May. Out of the three, one Indian major is selling base grade to the GCC market for May shipment at $740–745/t cfr Jebel Ali, but this hasn’t sparked interest. Bids from tube manufacturers are $710/t cfr.

The price of a 1.2mm SPHT-1 grade bid from a Chinese major is $770–780 per t cfr Dammam or Jebel Ali. The mill noticed increased purchasing activity in Africa and has since shifted its attention there.

Re-rollers in the bloc have seen an increase in domestic and export sales of hot-dipped galvanized material; their sales in March compared to the same time in February have nearly doubled.

“Tier-one mills in China, Japan, India, and Taiwan do not offer base grade HRC at prices below $730-745/t cfr to our area. For Indian mills, purchasing prices in Europe at $825-835/t cfr Antwerp/Belgium and Italy are more profitable; as a result, big Indian mills even refrain from offering in the GCC, according to a buy-side source.