Demand for flat rolled steel in the United Arab Emirates has improved this week, with some buyers returning to the market. The market place can be aptly described as low stocks low buying low price. However there has been faint revival in buying as extremely low stock levels are not able to meet the demand.
HRC from sources other than China is being offered at USD 630 per tonne to USD 650 per tonne CFR Dubai. China has stopped HRC offers post rebate removal. On the flip side Indian mills continue to be active with attractive offers in the range of USD 630 per tonne to USD 640 per tonne CFR as the domestic market is in smithereens.
HDG from China is offered at USD 800 per tonne to USD 840 per tonne CFR, and a local producer is accepting HDG orders at USD 850 per tonne to USD 900 per tonne delivered UAE. Indian mills are fairly inactive unable to withstand Chinese onslaught. Nonetheless quality conscious buyers are transacting at USD 870 per tonne CFR, Dubai.
Local sources say that the orders placed now will be delivered after Ramadan (mid-September), when the market is expected to be better. They believe the current price levels have brought stability, and that producers, raw material suppliers and buyers are happy with this situation.
www.steelprices-middleesat.com is a comprehensive service for tracking real time domestic steel prices and trends in Middle East.