Exhausted EU quotas for Indian-origin hot rolled coil, subdued Indian domestic demand and year-end inventory concern among Gulf Cooperation Council re-rollers have prompted Indian mills to compromise on HRC quotes.

In Saudi Arabia and United Arab Emirates, Indian-origin 2mm+ SAE grade HRC offers have declined nearly $50/tonne on-week to $905-910/t cfr Dammam, Abu Dhabi and Sohar for November deliveries. However, buying appetite is still low, notes Kallanish.

Three major Indian mills are heard competing with each other to conclude a 12,000-tonne lot HRC deal in Oman, with the bid hovering at $910/t cfr. However, the bidder is yet to shake hands with any supplier.

Egyptian mills’ export quotes have inched down $10/t to $1,000/t fob Egypt for base grade 2mm and up SAE 1006 grade HRC, $1,060/t fob for S235JR 1.06-1.19mm material, and $1,030/t fob for 2mm and up S335JR grade HRC. S500MC HRC of 2mm and up thickness is meanwhile offered at $1,065/t fob for November delivery, sources confirm.

However, for orders with multiple thicknesses and grades of HRC, an additional $25/t discount is applied on the quote for each grade.

Saudi Arabia-based Hadeed is expected to announce December-delivery prices imminently. The company has concluded numerous deals and sold substantial tonnages in the region after its unusual discount on quotes since the beginning of September of SAR 225-562.5/tonne ($60-150). "Hadeed is expected to reduce its HRC prices for December deliveries, in line with the Indian mills which are dominant now in the Gulf, but when the quota in the EU reopens, they will shift their focus away from KSA", says a sector participant.

Hadeed previously announced November-delivery prices for SAE 1006 re-rolling grade 3mm and up HRC at SAR 4,087.5/t ($1,090), excluding 15% VAT, while 2mm product is at SAR 4,162.5/t ($1,110). These prices are delivered within Saudi Arabia.

3mm and up SS400 grade HRC is at SAR 4,162.5/t ($1,110), while 2mm product is at SAR 4,237.5/t ($1,125). 2mm and up S235 grade HRC is meanwhile quoted at SAR 4,275/t ($1,140) delivered (see Kallanish passim).