The Indian major is back in the Gulf Cooperation Council hot rolled coil market after a long absence. Its price is marginally higher than Chinese mills when extras for thickness and grades are taken into account, but for buyers, short lead time is always worth the premium of $10/tonne, notes Kallanish.

This week, the Indian major surfaced its offer for 2mm thick S235JR/SAE1006 grades at $640/t cfr GCC, equivalent to $605-610/t fob India for January load-readiness. This involves a maximum one-week ocean freight duration.

Buyers note that traders are offering at almost $10/t below Chinese mills. An unsolicited offer from a state-owned Chinese trading house for 2mm SAE 1006 grade HRC was seen at $615/t for February shipment, while Chinese first-tier mills are targeting $625-630/t for 2mm+ SS400 grade. This week, a tier-one Chinese supplier revised its 1.2mm SPHT-1 grade HRC quote to $660/t from its ESP line and 3mm+ base at $620/t from its regular line for early-February shipment.

Prices, unless otherwise stated, are on a cfr Dammam, Jebel Ali or Sohar port basis.

Japan’s Nippon Steel is still out of the market and has a limited allocation for the region for March load-readiness, which is expected to be released in early January. 

"The market is very volatile, changing almost daily. One day down, the other day up. Due to cost pressure, on iron ore and coking coal prices in the fourth quarter, a price decline seems not possible, at least until the end of January, since iron ore inventories at Chinese ports are below the monthly average volumes, indicating iron ore demand will not soften soon," comments a trader.