GCC buyers monitor Vietnamese HRC, supply pool increases
The Gulf Cooperation Council hot rolled coil market has fallen completely silent amid a lack of deals. Almost all potential buyers, even those who released enquiries last week, have decided to postpone their procurement. They are meanwhile monitoring the Vietnamese HRC market for Chinese and Indian mills’ deals or offers to give an idea to GCC buyers, Kallanish observes.
Ex-China 0.35-1.7mm thickness full-hard cold rolled coil prices were in freefall between last Friday and Tuesday this week. One offer translated into a deal for 2,300 tonnes at $760/tonne cfr United Arab Emirates for July shipment.
Last week, a boron-added 1.7-7.4mm thick SS400 and A36 combined grades consignment was offered at $770/t cfr GCC by Indian mills for July shipment. Ex-China material of the same thickness SS400 grade was quoted at $750/t cfr GCC for August shipment. Indian mills’ offers were negotiable, however.
This week, ex-Japan 2mm+ SPHT-1 grade HRC is offered at $815-820/t cfr. Indian mills’ 2mm+ SAE 1006 grade boron-added initial offers are at $750/t cfr, but, for firm bids and large quantities, Indian mills are expected to compromise.
"Since yesterday, ex-China SS400 and SAE 1006 grade HRC offers to Vietnam are at $660/t and $675/t cfr, respectively,” a prominent GCC source explained on Tuesday. “This decrease of more than $50/t on-week makes GCC buyers target SAE 1006 grade HRC at $700-715/t cfr GCC.”
"As coking coal and iron ore prices have fallen sharply, costs are reduced, and these prices are workable for the sellers as well,” he added.
This week in Saudi Arabia, 2.8mm+ thickness G90 hot-dip galvanized coil from Taiwan is heard offered at $1,100/t for August/September shipment, while ex-China same material is at $1,010-1,020/t for August shipment, both cfr Dammam. Also, ex-China 1.2mm SPHC grade HRC is heard offered at $800/t cfr Dammam for August shipment.
"In addition to regular HRC exporters to our region, HRC producers from Australia, Kazakhstan and Brazil are in the GCC market to sell their material, which is a good sign for the buyers,” says a stockist. "All buyers prefer to wait and see [how] the market [develops]."
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Anonymous
Very good overview of the weekly steel market.
Anonymous