Kallanish Steel Articles are only available for active subscribers and clients currently on trial. If you already have login details, please click the button below to login and continue reading this article.
Truly global, user-friendly coverage of the steel and related markets and industry that delivers the essential information quickly while delivering on most occasions just the right amount of between-the-lines comment and interpretation for a near real time news service of this kind.
Very good overview of the weekly steel market.
Updates during the day from our global editorial team.
Updates during the day from our global editorial team.
The Gulf Cooperation Council hot rolled coil market has witnessed some deals concluded by tubemakers, mostly with Indian mills due to short lead times. Due to the Hajj season and upcoming Eid Al Adha holiday, business activity is expected to be suspended from next week until the third week of July, Kallanish observes.
Prices are approaching the threshold of $700/tonne cfr GCC. Indian mills prefer to maintain their prices at $720-740/t cfr GCC and not to go below this threshold. Indian, Japanese and Chinese mills are heard to be preparing to cut production. This news has stimulated buying activity since last week as pipemakers' inventories are receding to low levels. They have started buying small quantities of HRC for end-July shipment to be delivered in August.
Last week, numerous deals were concluded by Indian mills with tubemakers for 2mm+ thickness and multiple sizes of boron-added SPHT-2 and ASTM A36 grade HRC at $715-730/t cfr United Arab Emirates ports. The lower end of the range is valid for quantities of over 5,000 tonnes.
However, re-rollers in UAE and Saudi Arabia are still not in the market, heard having sufficient HRC stocks at an average price of $900-950/t, which is high above the current prices in the market. They are reported to be targeting purchases in a range of $650-700/t cfr GCC, to reduce their average stock cost.
This week, 2mm thickness re-rolling grade (SAE 1006) Russian HRC is heard offered by traders at $650-660/t, a Chinese tier-one mill’s material at $720-730/t, Indian and Taiwanese material at $735-745/t, and Japanese at $750-760/t. These values are all cfr GCC for end-July/August shipment, with a negotiable margin depending on the tonnage.
"A sharp fall is not expected, and buyers' waiting time is coming to an end since they face low inventory levels,” explains a prominent source. "If the seller examines the resumption of buying activity, they will stop reducing prices. I believe we are close to the bottom curve and mills will not be eager to go below $700/t cfr; however, undoubtedly, the market drives the prices."
Get daily steel news redirect to your inbox each day, along with prices.
© Kallanish 2022. All rights reserved.
© Kallanish 2022. All rights reserved.