The Gulf Cooperation Council (GCC) hot rolled coil (HRC) market is awaiting clarity on potential new deals. Re-rollers have issued inquiries for a combined 40,000-45,000 tonnes of re-rolling grades (SAE1006, SAE1008) HRC for August shipment.
Ex-China ocean freight rates have increased by $5-10/tonne on week to $40-43/tonne, depending on lot size. However, this has been offset by Chinese futures falling for four consecutive days.
This week in the GCC bloc, initial offers for SAE1006 HRC from Chinese mills were heard at $580-585/tonne cfr Jebel Ali, while offers for SAE1008 were at $590-595/tonne cfr. Buyers in the region have adopted a cautious approach as HRC prices decline, with target prices around $570-575/tonne cfr Jebel Ali for August shipment.
The GCC HRC market has remained stable, with a few tube makers in Saudi Arabia and the United Arab Emirates releasing inquiries for small tonnages. However, the market is generally quiet, as most buyers have enough stocks in the UAE.A Taiwanese mill was heard to have concluded a deal for 7,000 tonnes of re-rolling grade (SAE 1006) HRC at $950/tonne cfr GCC mid-last week. Imported HRC prices in the GCC region have maintained stability, with a slight rise attributed to increased demand from the construction sector.
