Hot rolled coil buyers at the Gulf Cooperation Council are receiving inconsistent price offers. A Japanese seller lowered its initial hot roll offer from its target price of $740/ton CFR to $725/ton CFR GCC, but Chinese manufacturers increased their price offers by $35-40/ton within a week.
Last week, a buyer signed an agreement for a total of 25,000 tons of re-rolling quality (SAE 1006) thick hot sheet from two manufacturers in different Far Eastern countries at an average price of $705-710/ton CFR GCC for the end of April.
Earlier this week, a pipe manufacturer signed an agreement with a Chinese producer for 10,000 tons of SS400 grade HRC for $705/t CFR GCC. On the other hand, offers of Chinese same quality products were at $745-750/ton CFR GCC for May shipment on Tuesday.
A major Chinese 1.2mm SPHT-1 grade supplier has increased its price from $730-735/t CFR last week to $755-765/t CFR GCC for May shipment.
A Saudi producer, the only HRC producer in the region, gave an initial price offer for 3 mm SPHC (basic grade) at $810/ton delivery for May rolling, while offering Taiwanese product at $720-730/ton CFR for May shipment. .
A local trader said "I have trouble understanding the trend. Chinese mills raised their prices overnight due to the lack of Indian HRC offers in our market."
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