Saudi Arabia's hot-rolled coil (HRC) market has slowed, with buyers remaining cautious and import inquiries weakening amid escalating regional tensions and threats to shipping from Yemen's Houthi movement, according to Mesteel. Chinese HRC offers have increased by around USD 5 per ton from previous indications. Material of 1.2 mm is reported at USD 630-640 per ton CFR Saudi Arabia, while 3 mm material is heard at USD 605-615 per ton CFR.
The GCC's sole HRC producer, Hadeed, is offering base-size HRC at around USD 740 per ton delivered in Saudi Arabia. Commercial-quality Chinese heavy plate of 20 mm and above was offered last week at around USD 640-650 per ton CFR Saudi Arabia, compared with USD 635-645 per ton previously. Market participants report that buying interest has weakened, with uncertainty over shipping, freight costs and delivery schedules discouraging new import commitments.
The Houthi threat has added further risk to the import market. In July, the group announced a maritime ban targeting Saudi-linked shipping through the Bab el-Mandeb Strait. The security situation deteriorated further in October, with Houthi attacks targeting Saudi infrastructure, including Riyadh's King Khalid International Airport and an administrative building at Saudi Aramco's headquarters in Dhahran.
Regional tensions are also reflected in suppliers' shipping terms. Chinese steel suppliers are adding clauses stating that if Iran imposes fees on vessels transiting the Strait of Hormuz, or if vessels must drift or wait because of a closure, additional costs will be shared pro rata among cargoes destined for Persian Gulf ports. The clauses specify drifting charges of USD 0.60-0.70 per revenue ton per day, payable every 15 days, with all additional costs borne by the buyer.
The combination of security risks, uncertain vessel availability and potentially higher freight and insurance costs is complicating purchasing decisions. According to a GCC-based steel trader cited by Mesteel, import inquiries have slowed as buyers take a cautious approach to new cargoes while shipping conditions remain uncertain. The same trader noted that Chinese HRC offers remain available, suggesting that the current slowdown reflects buyers' caution over logistical and security risks rather than a lack of supply.
Source: Mesteel (news.mesteel.com), HRC buying slows as shipping risks mount.
Source: news.mesteel.com