The hot rolled coil (HRC) market in the Gulf Cooperation Council (GCC) has slowed to a crawl as most buyers, particularly in the United Arab Emirates, have sufficient inventory on hand. In contrast, Saudi Arabian buyers are maintaining minimal stock levels and favoring small, incremental orders, primarily from the domestic producer. This cautious approach has led to a sharp decline in new enquiries being floated in the regional market.

Last week, a solitary enquiry from a tube manufacturer resulted in a deal being struck through a trading house sourcing from a top-tier ex-China supplier. However, this isolated transaction highlights the overall stagnation in the GCC HRC market as buyers adopt a wait-and-see attitude amid economic uncertainties.

The slowdown in demand comes as the GCC economies are expected to moderate to 1% growth in 2023 before rebounding to 3.6% in 2024, according to the latest World Bank update. The region is also grappling with the growing burden of non-communicable diseases, which pose a significant threat to health and economic progress.

Despite the current lull, the GCC remains focused on diversifying its economy and establishing itself as a leading tourism destination. The upcoming launch of the "GCC Grand Tours" unified tourist visa is expected to attract foreign visitors and spur growth in the travel and hospitality sectors.