Ex-Japan HRC prices have remained broadly stable or have edged up slightly across key export destinations in February, despite subdued global demand and strong competition from other Asian suppliers. Trading activity has been sporadic in Asian and Middle Eastern markets, while the EU has remained largely quiet, as CBAM-related costs continue to weigh on import viability.
More specifically, prices of ex-Japan SAE1006 HRC for the Asian region have settled at $510-520/mt CFR in late February, versus $505-520/mt CFR in late January. In Vietnam, offers for ex-Japan HRC have been voiced at around $510-515/mt CFR, mainly the same as in January, however, failing to attract buyers due to tough competition with other Asian suppliers and extremely slow trade conditions following long Tet holiday in the country and in the region.
Meanwhile, offers for ex-Japan HRC in Pakistan have settled at $510-520/mt CFR in late February, up by $5/mt on the lower end of the range month on month. Furthermore, offers for ex-Japan HRC in Bangladesh have been reported at around $510-520/mt CFR levels as well, compared to $505/mt CFR in the previous month.
In the meantime, while a Japanese mill is understood to have set its initial price expectations at approximately $520-525/mt CFR in the Middle East, up by $10/mt month on month, buyers in the UAE are said to be assessing workable levels closer to $505/mt CFR, for end of April-May 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 through traders at €640-650/mt CFR DDP, up by €20-30/mt since late January, inclusive of CBAM costs.