UAE market seems to has become averse to new bookings of HRC. Apart from slow demand aggressive offers by Chinese mills has stalled aspirations of Japanese and Korean mills.
It is learnt that Japanese mills off late are reluctant to give any discount for January booking. They are sticking on to offers at USD 580 per tonne to USD 590 per tonne CFR. Likewise Korean could muster another USD 5 per tonne.
However neither has evoked any response from the traders owing to sufficient stocks and aggressive posturing by Saudi Mills who are offering old material at USD 560 per tonne to USD 575 per tone CPT with distinct advantage of short lead time and smaller lots helping booking.
However the balance is likely to tilt one way or the other by end December as mills brace up for raise in January. Traders and buyers will hold on for a week at least before the booking reopens. Chinese domestic levels are increasing it will lead to price spiral soon thereby nudging traders to book before it is too late.
