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Kallanish Kallanish

Knowledge matters Knowledge matters

October, 20th 2021

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SEP 21

MENA HRC buyers hesitate amid falling market


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