Ex-Japan HRC offers prices have fallen slightly over the past month amid tight competition with other suppliers globally, especially those from China and other Asian countries. At the same time, although some bearishness persists in Asia, Japanese suppliers may increase their offers to higher-priced destinations, including Europe and the Middle East.
Prices for ex-Japan SAE1006 HRC for the Asian region have slipped to $570-580/mt CFR in late April, against $585-640/mt CFR in late March. According to sources, although Japanese suppliers have been struggling to attract the attention of Vietnamese buyers throughout this month, by late April they have managed to secure a deal for around 30,000 mt at $568/mt CFR, while offers have settled at $570-575/mt CFR, down by $10-15/mt over the past month. Besides, customers from Pakistan have reported a number of deals signed at $570-572/mt CFR during the past two weeks, against $605/mt CFR in late March. “For now, trade has been paused as Pakistani re-rollers have finished their purchasing for May/June shipment, while for July they still have time to start negotiations,” a Pakistani trader told SteelOrbis. In the meantime, following several sizable deals for ex-Japan HRC in Bangladesh at $580-590/mt CFR last week, this week ex-Japan offers have been estimated at around $580/mt CFR and slightly below. This means offer prices have lost around $40-50/mt month on month.
Furthermore, one of the leading Japanese HRC producers is reported to have sold around 45,000 mt of HRC at $570-575/mt CFR to the Middle East, versus $620/mt CFR reported in late March. According to a market insider, late last week another deal was signed at $555/mt CFR UAE, though this information has not been confirmed by the time of publication.
In the meantime, Japanese suppliers have remained focused on sales in Europe, though trade has been challenged by the weak local demand in the region this month, coupled with limited buying interest in import HRC due to the lack of clarity regarding the review of EU safeguard measures. Offers for ex-Japan HRC in southern Europe are estimated at around €600-610/mt CFR in late April, mainly the same level as at the end of March, though the prices have increased by at least €20/mt since early April and by €10-20/mt as compared to the last deals for around 30,000-40,000 mt signed at €590/mt CFR southern Europe last week.
