Ex-Japan HRC prices have recorded modest increases across key export destinations in January, supported by firmer offers from Japanese mills, despite intensifying competition from other Asian suppliers. As a result, trade activity has remained sporadic across Asian and Middle Eastern markets, while the EU market is still largely inactive, with CBAM-related costs continuing to undermine import viability.
More specifically, prices of ex-Japan SAE1006 HRC for the Asian region have settled at $505-520/mt CFR in late January, versus $490-515/mt CFR in late December. In Vietnam, offers for ex-Japan HRC have been voiced at around $510-515/mt CFR, mainly the same as in December, failing to attract buyers due to tough competition with other Asian suppliers, especially those from India, who in mid-January managed to sell sizable volumes of HRC at $485-487/mt CFR. Offers for ex-Japan HRC in Pakistan have settled at $505-520/mt CFR in late January, compared to $490-495/mt CFR in late December, though most bids have been voiced at $495-505/mt CFR levels.
Furthermore, offers for ex-Japan HRC in Bangladesh have been reported at around $505/mt CFR level, compared to $490-495/mt CFR in the previous month. According to sources, no deals have been heard yet since the market is bad, and the general election is coming next month. “It seems that buyers are not very interested in purchases unless the price is attractive,” a local trader said.
In the meantime, negotiations for a 15,000 mt re-rolling quality HRC cargo remain unresolved in the Middle East, with a Japanese mill understood to have set its initial price expectations at approximately $510/mt CFR UAE, up by $20/mt month on month. Meanwhile, buyers in the Middle East are said to be assessing workable levels closer to $500-502/mt CFR UAE for April shipment.
Meanwhile, Japanese steel suppliers 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-Japan HRC in southern Europe are currently quoted at €620/mt DDP, inclusive of CBAM costs, the same as in December.