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Kallanish Kallanish

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October, 20th 2021

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SEP 21
12:04

MENA HRC buyers hesitate amid falling market

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With iron ore and scrap prices falling, and hot rolled coil values in Europe starting to turn down, buyers of HRC in the Gulf Cooperation Council have adopted a wait-and-see policy. End-users, and therefore also re-rollers, are hesitant to make purchases, meaning the market is fairly quiet, notes Kallanish.

Saudi Arabia-based Hadeed’s discount on quotes since the beginning of September of SAR 225-562.5/tonne ($60-150) has helped it conclude numerous deals for November delivery. The discount policy is designed on various parameters such as volumes, payment, business relations and sustainability.

Hadeed previously announced November-delivery prices for SAE 1006 re-rolling grade 3mm and up HRC at SAR 4,087.5/t ($1,090), excluding 15% VAT, while 2mm product is at SAR 4,162.5/t ($1,110). These prices are delivered within Saudi Arabia.

3mm and up SS400 grade is at SAR 4,162.5/t ($1,110), while 2mm product is at SAR 4,237.5/t ($1,125). 2mm and up S235 grade HRC is meanwhile quoted at SAR 4,275/t ($1,140) delivered.

In Saudi Arabia and UAE, Indian-origin 2mm+ SAE grade HRC initial offers are at $960-970/t cfr Dammam or Abu Dhabi, and open to negotiation, unchanged from last week. Mills are ready to compromise to sell at $940-950/t cfr Dammam, says one sector participant. A CIS-based mill is meanwhile heard to have concluded a deal for more than 20,000 tonnes of the same grade HRC for November shipment at $920/t cfr UAE.

Egyptian mills’ export quotes are at $1,010/t fob Egypt for 2mm and up SAE 1006 grade HRC, $1,070/t fob for S235JR 1.06-1.19mm material, and $1,040/t fob for 2mm and up S335JR grade HRC. S500MC HRC of 2mm and up thickness is meanwhile offered at $1,075/t fob for November delivery, sources confirm. Shipments to the Far East and GCC are done from Adabiya Port, whereas Alexandria is preferred for European destinations.

In Iran, 2-3mm SAE 1008 grade HRC is transacted at IRR 267,889/kg ($974/t) ex-stockists’ warehouse and excluding VAT. Payment is in cash. The Iranian riyal depreciated on Tuesday to 275,000 per dollar.

Burak Odabasi Turkey