This week, South Korean trade bodies in the United Arab Emirates have been actively pursuing potential buyers, highlighting the competitive nature of the market. In particular, it is stated that a trading company offered $610/ton cfr Jebel Ali for SAE 1006 HRC over 2 mm for shipment in May. This offer indicates that a negotiable margin is available. Prices of similar products in India continue to remain at $610-620/ton cfr for April shipment.
It is stated that South Korean manufacturers rarely come to the market as demand in Southeast Asia and Europe decreases.
Last week, a trading company signed a deal for second-tier Q195 grade HRC at $575/t cfr Jebel Ali for late April shipment. This indicates that inventories are building up and sellers are under selling pressure.
Ex-China second stage HRC offers increased to $555-557/t cfr Jebel Ali. On the other hand, first-tier HRC offers are reported to be at $580-585/ton cfr in preparation for May loading.
There are concerns that China's bullish efforts may not be sustainable. Industry participants state that volatility will continue, but a recovery does not seem likely until the holiday in the second week of April. This encourages market players to be careful and follow the market closely.
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