Given the ongoing weak demand in the local UAE market following the recent holiday, Emirati buyers decided to put off their purchases for a further week. Consequently, no deals have been completed this week and, despite the reduced price expectations of Emirati purchasers, import hot rolled coil (HRC) offers have mostly remained stable. In the meantime, industry participants report that the terrible weather in the UAE and the tensions in the region have had a significant impact on end-user demand.
"Demand has remained slow even after Ramadan, especially with the Iran-Israel tensions making it even worse," a representative of a major re-roller told SteelOrbis.
Over the past week, ex-China SS400 offers to the UAE have stayed unchanged at $550-555/mt CFR for May shipments. However, according to reports, some Chinese traders are offering to the UAE at around $570/mt CFR.
Similarly, HRC offers from India are stable week on week at $600-610/mt CFR for May and June shipments, but Emirati clients have shown no enthusiasm since lower levels are available in the market.
On the other hand, South Korean suppliers have done the same as Japanese suppliers and stopped offering to the UAE, since they saw almost no interest or purchases from Emirati buyers. Last week's offers from South Korea to the UAE were at $640/mt CFR for May shipment.