The Gulf Cooperation Council hot rolled coil market is observing diminishing trading activity due to Ramadan.

Last week, a major Indian supplier entered the market, offering end-March shipments with delivery in mid-April, seeking a premium of $5-10/tonne for short lead times. Subsequently, it secured an order from a re-roller for 25,000 tonnes at approximately $513-514/t, down from its initial target price of $525/t, Kallanish notes.

In addition to this sizeable volume, a few more buyers booked small tonnages at slightly higher prices.

Meanwhile, a pipemaker in Oman booked 10,000-15,000t of HRC through a trading company for ex-China tier-one material in multiple thicknesses ranging from 1.8-6.5mm. This was effectively priced at around $495/t cfr Sohar port for May load-readiness.

“The GCC has become the HRC dumping ground for suppliers desperate to export as anti-dumping duties, tariffs, etc., restrict their [suppliers] sales destinations/countries,” comments a trader.

Thin-gauge HRC buyers have been informed that end-March-load-readiness bookings made in February are being prepared for shipment this week by a Chinese supplier. This signifies to buyers that suppliers' order books remain incomplete and there is a strong appetite for selling thin gauges in particular. Traders are providing long payment terms – LC 150 or 180 days – to buyers with merely a $7-10/t surcharge over LC at sight prices.

Ex-China 1.2mm SPHC/SPHT-1 grade offers are heard at $447-450/t against LC at sight and a trading company offered $555/t against LC 150-180 days.

Re-rolling grade (SAE 1006) 2mm thick HRC prices are at between $515 and $518/t, while 2.5-3mm is priced at $505-508/t from tier-one Chinese mills primarily for May load readiness. There is a chance of receiving end-April shipment from a few suppliers.

The Taiwan-origin average stands at $520/t for 2-3mm thickness, with the lower end limited to 40% of the total order, while an unconventional Japanese supplier is offering at $518/t for 2-3mm with no size restrictions.

Nippon Steel East Japan Steel Works (Kashima) is heard to be undergoing a maintenance shutdown in May, which may affect its HRC allocation for the region.

Unless otherwise stated, all prices are based on cfr Jebel Ali or Abu Dhabi in the UAE, or Dammam, Saudi Arabia, on an LC at sight basis.