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GCC flat steel buyers continue to face uncertainty over imported supply as vessel availability, freight costs and disruptions around key shipping routes complicate procurement. The situation is forcing buyers and suppliers to work around available vessels, alternative discharge ports and additional shipping costs, while some suppliers remain reluctant to commit to certain destinations.
In the UAE, buyers are receiving Chinese steel offers for delivery to Jebel Ali, Fujairah or Sohar on a seller’s option, as suppliers continue to work around vessel availability and port constraints.
The situation is more challenging for shipments into Saudi Arabia. Some suppliers currently report that they do not have a suitable vessel or service available for Jeddah, while many remain sidelined from the market amid shipping uncertainty.
In addition to higher freight, some sellers are incorporating clauses that pass on additional costs if vessels are required to wait or drift because of disruption to the Strait of Hormuz. Some Chinese traders are offering cargoes with a potential waiting charge of around USD 0.70 per ton per day if the Strait is closed, although such costs would depend on the specific vessel and contractual terms.
Against this backdrop, recent Chinese market indications put 3 mm HRC at around USD 610-620 per ton delivered to Jebel Ali, Sohar or Fujairah. Chinese CRC is offered at around USD 660-670 per ton in the UAE, while plate is indicated at around USD 640-660 per ton for Jebel Ali.
The latest Chinese HRC offers for the UAE are above MESTEEL’s August 30 assessment, which put 3 mm HRC at USD 590-600 per ton CFR UAE, as Chinese prices and freight costs have increased in recent days.
For Saudi Arabia, Chinese 1.2 mm HRC is heard at around USD 640-650 per ton CFR Jeddah.
Indian material remains another potential supply option. Indian billet has been offered at around USD 450-455 per ton FOB, while an indication of around USD 515-520 per ton CFR Saudi Arabia has been heard. However, no transactions have been heard amid uncertainty over vessel availability and shipping routes.
A GCC-based trader said the market remains focused on shipping availability and delivery certainty, with freight costs continuing to play an important role in import decisions.