Japanese hot rolled coil (HRC) export prices were largely stable or edged slightly lower in December. Overall trading activity remained subdued, with negotiations mostly confined to small volumes. Competition in Asia and the Middle East intensified during the month, driven by offers from other Asian suppliers. Meanwhile, Europe remained largely inaccessible due to the implementation of the Carbon Border Adjustment Mechanism (CBAM).
More specifically, prices of ex-Japan SAE1006 HRC for the Asian region settled at $490-515/mt CFR in late December, mainly the same as in late November. In Vietnam, offers for ex-Japan HRC have been voiced at around $505-515/mt CFR, compared to $515/mt CFR last month, failing to attract buyers due to tough competition with other Asian suppliers, especially those from India, who at the end of December managed to sell sizable volumes of HRC at $480/mt CFR. Offers for ex-Japan HRC in Pakistan settled at $490-495/mt CFR in late December, compared to $490-500/mt CFR last month.
Furthermore, offers for ex-Japan HRC in Bangladesh have been reported at around $490-495/mt CFR level, the same as last month.
In the meantime, offers from Japanese suppliers to the Middle East have been voiced at $495-500/mt CFR, down by $5/mt on the higher end of the range 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, the latest indicative offers for ex-Japan HRC in southern Europe are currently quoted at €600-620/mt DDP, inclusive of CBAM costs, up by €20/mt month on month.
