Ex-Japan SAE1006 HRC prices showed a noticeable upward trend throughout April, supported by firmer domestic fundamentals and higher upstream costs, but trading activity has remained subdued across key export destinations. The Middle East market continues to be effectively closed to all foreign suppliers, including the Japanese, amid the ongoing conflict, while access to the EU remains highly restricted due to the impact of CBAM and safeguard measures, limiting viable sales channels. In Asia, although prices have increased, buying interest is cautious, with customers resisting higher offers and actively comparing alternatives, resulting in stiff competition and limited deals despite the overall bullish pricing direction.
More specifically, prices of ex-Japan SAE1006 HRC for the Asian region have settled at $570-630/mt FOB in late April-early May, versus $535-550/mt CFR in late March. In Vietnam, offers for ex-Japan HRC have been voiced at around $610-630/mt CFR, compared to $535-545/mt CFR in late March, and, according to sources, the new increased offers are not competitive compared to other suppliers.
At the same time, while offers for ex-Japan HRC in Pakistan have been reported at $570-575/mt CFR, up by $20-25/mt since late March, most Pakistani customers are expecting to sign new deals at not above $550/mt CFR. “These offers are initial ones, and most customers will try to negotiate and push for discounts,” a Pakistani trader told SteelOrbis. Furthermore, offers for ex-Japan HRC in Bangladesh have been reported at around $560/mt CFR, compared to $540/mt CFR in the previous month.
In the Middle East, Japanese suppliers have effectively withdrawn from the market since March, suspending both offers and sales amid the ongoing conflict. As a result, market activity has largely stalled, with no clear timeline for a recovery. In the meantime, in early May, some foreign suppliers have started to return with new offers to the Gulf region, like those from China at $580-590/mt CFR UAE for SS400 coils and from India at $620-625/mt CFR Saudi Arabia for SAE1006 HRC, but no offers have been reported from Japanese suppliers so far.
Meanwhile, Japanese steel suppliers also remain absent from the European market due to persistent trade restrictions. The region has become even less accessible following the implementation of CBAM and revised safeguard duties. According to sources, the latest indicative offers for ex-Asia HRC, including from Japan, in southern Europe are currently quoted through traders at around €700/mt DDP, mainly the same as in late March, inclusive of CBAM costs.