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Steel & Metal
- Saudi Arabia -

Buyers in the GCC adopt a cautious approach as HRC prices decline.

Imported hot rolled coil offers in the Gulf Cooperation Council (GCC) market have decreased from India for April delivery and from Japan and Taiwan for end-May/June shipment to below $600-610 per tonne cfr for re-rolling and tube grades. Buyers in the region have adopted a cautious approach, adjusting their target prices to around $570-575 per tonne cfr Jebel Ali or Dammam in response to the declining trend. Notably, a trading company is offering ex-China first-tier 2mm+ thick SAE1006 grade at $570 per tonne for May shipment, while the initial offer from Taiwan stands at $610 per tonne for end-May shipment. Indian mills are pricing their offers at $600-610 per tonne for April shipment due to subdued domestic demand. Suppliers are willing to negotiate deals with a margin of $10-15 per tonne for tonnages exceeding 10,000 tonnes, highlighting the market's flexibility. These price quotations are based on cfr Dammam or Jebel Ali port. Market dynamics indicate that buyers find $600 per tonne cfr GCC ports unattractive, according to insights from a trading source. Additionally, a major Chinese supplier has reduced its prices for thin gauge products, with prices for various grades adjusted for mid-May shipment. Saudi Arabia's primary HRC supplier has already sold out for May rolling, with expectations of lower prices for June deliveries compared to the quoted $745 per tonne for May shipments.

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