Japanese HRC exporters have been keeping their offers relatively stable in almost all main trade destinations except Europe during September, though some downward bias has been seen in new deals, as most overseas buyers have been insisting on additional discounts given the slow demand in most regions and the continuous pressure from cheaper ex-China HRC prices globally.
More specifically, prices for ex-Japan SAE1006 HRC in the Asian region have settled at $500-510/mt CFR in late September, against $500-530/mt CFR in late August. According to sources, a deal for around 30,000 mt of ex-Japan HRC has been signed in Bangladesh at $500/mt CFR, which means the deal price has remained at the same level as reported in early September. Besides, another deal for 25,000 mt of ex-Japan SAE1006 HRC has been reported at $510/mt CFR Pakistan, down by $10-20/mt since late August. In the meantime, Japanese suppliers still struggle to attract the attention of Vietnamese buyers given the cheaper ex-China HRC.
Furthermore, one of the Japanese HRC producers is reported to have sold around 28,000 mt of HRC at $495/mt CFR on average to the UAE, while most offers have been voiced at $500-510/mt CFR. Thus, ex-Japan HRC deal prices in the Middle East have declined by $5/mt month on month, though offers have remained at the same levels.
In the meantime, Japanese suppliers have kept facing challenges in Europe due to safeguard quota measures, the antidumping investigation and the decline in local HRC prices in the region. Thus, interest in Japanese HRC has declined significantly among European customers while fresh offers for ex-Japan HRC have been voiced at €540-545/mt CFR, down by €5-10/mt since late August. “Apart from slow local demand in Europe, the competition with other suppliers has remained tight, and a number of Chinese exporters have started to offer to the EU as well, despite the 18 percent duty,” a market insider told SteelOrbis.
