HRC Price Increase Makes GCC Buyers More Conservative – 1

Buyers of HRC in the GCC are apprehensive and concerned about a price decline. Due to a sharp and unexpected price decline in the third quarter of 2022, their hands were burned, says a trader. “This time, buyers are more cautious when it comes to closing purchases.”

Major Indian mills have reportedly stopped making offers as they assess how sustainable the price increase is and wait for the European HRC market to stabilize. Some are aiming for fob prices this week that are $5–25/t higher than their cfr GCC bids from the previous week. A tubemaker reached an agreement with an Indian mill last week for 11,000 tonnes of SPHT-2 and 3 grades, at a price of $645/t cfr GCC port, for shipping in February.

For a combined tonnage of 45,000–50,000t, GCC re-rollers floated HRC inquiries. The largest of them published their request for 25,000 t of re-rolling SAE 1006 and SAE 1008 grades last Friday, with a target price of $640/t cfr. On Wednesday, a deal is anticipated to be reached at a price of $650–660/t cfr UAE.

An Indian mill’s bids for 2mm SAE 1006 (re-rolling grade) and tube-making grade this week, delivered to GCC ports, are at $670/t for shipping in late-February, an increase of $15–25/t over the previous week. Product prices for shipments in March are $663/t for ex-China and $670/t for ex-Taiwan.

For shipments in March, a South Korean mill has increased its target price for SAE 1006 grade to $670/t fob Korea, which works out to $710/t cfr GCC ports. The only producer of HRC in the GCC has made proposals ranging from $710 to $715/t delivered within the bloc. This Saudi mill attracts interest from buyers by providing a 90-day payment advantage over LC.