In the UAE, demand for flat products from pipe producers and construction companies, in particular from Abu-Dhabi, as well as from stockists, is still poor. Moreover, the situation is aggravated by falling prices for import products and by political instability in the MENA region. Nevertheless, a few small batches of import HRC were delivered to the UAE in mid-March so inventories are more than moderate in the country. As a result, market players believe buyers will stay not very active for another month till the situation becomes stable.
In import market, suppliers of Ukrainian HRC have reduced prices by $40-55/t in a few steps over the month and thus some deals have been made. Although distributors of HRC from Zaporizhstal offered the material at $780-790/t C&F two weeks ago, last-week it was transacted at $770/t C&F. However, by late March they have reduced offer prices to the levels, at which small lots were booked previously. Quotations of HRC from China have fallen by $55-65/t over the month and are only slightly lower than those for the material from Ukraine. Prices for HRC from South Korea and India have not changed over the same period, and currently exceed those for the material from Ukraine by $80/t. Saudi Arabia’s Hadeed, who hopes demand will recover in the domestic market soon, is already offering May production of HRC by $30-40/t higher than a month ago. Such prices are unattractive to buyers but the producer may discount up to $20/t for bookings of big lots.
At present, stockists are careful both while purchasing and setting prices. They have left quotations of HRC unchanged while their offers of March production, which they have bought at rather high prices, are just by $14/t (AED 50/t) higher.
The only domestic flats producer Al Ghurair Iron and Steel (AGIS) has followed the downward trend and reduced domestic and export prices for HDG coils by $10-18/t in a month, those for full-hard CRC – by $30/t. The producer continues to sell most of its output in export markets, where buying activity is higher than domestically.
(Source: www.metalexpert-group.com )