Export prices for Japanese hot rolled coil (HRC) have remained largely stable throughout October, with mills concentrated on securing sales in the Middle Eastern and South Asian markets amid limited buying interest from other destinations. Europe has now become even more restricted due to the introduction of the Carbon Border Adjustment Mechanism (CBAM) and updated safeguard duties. Market sources said that overall trading activity has been subdued, with most negotiations centred on small lots, while buyers have continued to monitor regional demand trends before committing to larger bookings.
More specifically, prices of ex-Japan SAE1006 HRC for the Asian region have settled at $498-515/mt CFR in late October, versus $505-515/mt CFR in late September. In Vietnam, offers for ex-Japan HRC have been voiced at around $505-515/mt CFR, versus $512-525/mt CFR last month. Offers for ex-Japan HRC in Pakistan have remained relatively stable over the past month at $500/mt CFR in late October, with several deals for ex-Japan HRC are reported to have been signed at $498-500/mt CFR in past weeks.
Furthermore, offers for ex-Japan HRC in Bangladesh have been reported at around $500-510/mt CFR, mainly the same as last month.
In the meantime, offers from Japanese suppliers to the Middle East have been voiced at $510-515/mt CFR, up by $5-10/mt month on month. Although trading activity has been moderate in the region, current offers from Japan are considered to be rather competitive compared to those from other foreign suppliers, with several deals reported to have been signed at $515/mt CFR UAE during past weeks.
At the same time, Japanese steel suppliers continue to stay out of the European market amid ongoing trade restrictions. Besides, the region has now become even more restricted due to the introduction of the Carbon Border Adjustment Mechanism (CBAM) and updated safeguard duties.