South Korean and Japanese suppliers have been forced to cut offer prices after the slump in ex-China prices. Chinese exporters have started to sell more actively recently as customers have received additional discounts and have understood that the low price trend will persist in the near future, but may reverse in March when local demand in China will start to improve. Demand for ex-South Korea and ex-Japan HRC has been limited so far.
Ex-China SS400 HRC prices have slipped to $450-460/mt FOB, which have already been fixed in a number of deals, especially to South Korea, Pakistan and Vietnam.
At the same time, SAE1006 HRC offers from major South Korean exporters POSCO and Hyundai Steel have been heard at $470-475/mt FOB for April shipment, while only small volumes have been traded. According to sources, the previous price level, which suppliers have been trying to maintain after the holidays, was at $490-500/mt FOB.
Japanese exporters have also been forced to cut prices and their recent offers have been heard at $480/mt FOB to Southeast Asia. In the previous round of sales, deals were mostly at $500-505/mt FOB to different destinations.
Apart from the aggressive policy of Chinese exporters, Japanese and South Korean suppliers have been impacted by lower shipments of higher-value flat steel products to China’s automotive sector.
