Japanese hot rolled coil (HRC) export prices have slipped slightly in November, while mills have focused on securing business in the Middle Eastern and South Asian markets amid weak interest from other regions. Meanwhile, Europe has remained largely inaccessible with the approach of the introduction of the Carbon Border Adjustment Mechanism (CBAM). According to market sources, overall trading activity has been muted, with negotiations mostly limited to small volumes as buyers continue to track regional demand before committing to larger purchases.
More specifically, prices of ex-Japan SAE1006 HRC for the Asian region have settled at $490-515/mt CFR in late October, versus $498-515/mt CFR in late October. In Vietnam, offers for ex-Japan HRC have been voiced at around $515/mt CFR, mainly the same as last month, failing to attract buyers due to tough competition with other Asian suppliers, including those from Indonesia, India and China. Offers for ex-Japan HRC in Pakistan have settled at $490-500/mt CFR in late November, compared to $500/mt CFR last month.
Furthermore, offers for ex-Japan HRC in Bangladesh have been reported at around $490/mt CFR level, down by $10-20/mt month on month. According to sources, several deals are reported to have been signed at $490/mt CFR two weeks ago and at as low as $480/mt CFR last week in Bangladesh.
In the meantime, offers from Japanese suppliers to the Middle East have been voiced at $495-505/mt CFR, up by $5/mt on the lower end of the range week on week but down by $10-15/mt month on month. Trading activity has been moderate in the region, as Japanese suppliers have faced stronger competition in the region from other foreign suppliers.
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, indicative offers for ex-Japan HRC in southern Europe are currently quoted at €580–600/mt DDP, inclusive of CBAM costs.