Following sharp price decreases seen in April and May, ex-Japan HRC offers continued to tumble in June amid prevailing bearish sentiments in the overseas markets, triggered by decreases in China. Besides, the pressure has kept growing in higher-priced markets like the EU as well, given the tight competition with other Asian suppliers. However, starting from the last week of June, the market has become more positive in terms of the future price trend, which has already resulted in slight price hikes for ex-Japan HRC.
More specifically, prices for ex-Japan SAE1006 HRC for the Asian region settled at $595-600/mt CFR in late June, versus $600-610/mt CFR in late May. However, although the prices are lower as compared to last month, most foreign customers have been claiming ex-Japan offers are on the verge of increasing. In Vietnam, for instance, ex-Japan HRC offers have been reported at $595/mt CFR, down by $5-10/mt month on month, but $15-20/mt higher as compared to offers in early June. Meanwhile, customers in Bangladesh and India have reported numerous orders closed at $585-590/mt CFR at the end of June, down by $25/mt month on month. “We are waiting for September shipment prices from Japan at $590/mt CFR and above,” an international trader told SteelOrbis.
In the meantime, Japanese suppliers have kept actively offering their materials to the European market, though, once again they are facing strong competition from suppliers from Asia and Egypt. In late June, offers for ex-Japan HRC have been heard at €610-630/mt CFR, versus €640-645/mt CFR in late May, but up by at least €20/mt since mid-June. “Import offers have stopped falling in Europe, but most foreign suppliers, including those from Japan, have increased their offers, and, while it is still too early to talk about a strong uptrend, at least some stabilization is certainly expected in the short run,” a European steel trader said.
At the same time, offers for ex-Japan SAE1006 HRC have been estimated at $590-600/mt CFR in the Middle East, down by $35/mt month on month but versus deal prices at $550-570/mt CFR in mid-June.