Gulf Cooperation Councilย hot rolled coilย buyers have decided to minimise their mandatory restocking due to price fluctuations in China. Non-Chinese HRC suppliers have meanwhile informed customers they will announce their new prices next week once the market settles and there is clarity.
Chinese manufacturers and traders resumed work on Tuesday after a long holiday. Between morning and business close, Chinese prices saw sharp fluctuations. In the morning, offers were at $580-590/tonne for 3mm base grade S235JR/SS400 and at $600-615/t for 2mm SAE 1006 grade.
Last week, two re-rollers concluded separate deals with the same Japanese major. A25,000-tonne enquiry translated into a deal base (2mm SAE 1006) at around $520-525/t for end-November shipment. On the other hand, an 8,000t parcel, including structural grades, was concluded at $540/t for 2mm SAE 1006 grade and $550/t average effective. Towards the end of last week, another re-roller released an enquiry for 15,000t.
Meanwhile, theIndian major concluded some deals in the United Arab Emirates last week. Its SAE 1006 grade offer this week is at $550/t, an increase from $540/t last week, for November shipment and end-November delivery. The firm has limited allocation left.
However, there is little interest from regional re-rollers because the company’s production line is not a conventional hot strip mill but Compact Strip Production, which is based on thin slab casting.This is also known as a continuous strip plant (CSP) where thin slab is directly converted to HR coils for cost saving as compared to the conventional route of production.
On Monday, an Omani pipemaker released a 9,900t enquiry, which is expected to be closed towards the end of the week.
All prices are based on cfr Dammam, Jebel Ali or Abu Dhabi ports unless otherwise mentioned. Payments are against LC at sight.
Re-rollers in the United Arab Emirates are preparing to increase their GI prices by $40-50/t to $800-820/t for 1mm Z275 grade for delivery within the country. Buyers seem to be accepting the new levels on the back of the price increases seen over the last two weeks.
A Chinese trading house senior official explains: “Most of the trading houses refrain from offering as everyone is aware that prices will go down and they don’t want any re-negotiations or backouts.”
