Ex-Japan hot rolled coil (HRC) sales have been reported across multiple regions over the past week, with new deals concluded at slightly lower levels than prevailing offers, reflecting persistent competitive pressure from regional Asian suppliers.
In Asia, Japanese mills have continued to face strong competition from alternative origins, though several deals have been reported with discounts this week. In particular, a deal for around 30,000 mt of ex-Japan SAE1006 HRC has been signed in Vietnam at $512/mt CFR for November shipment, while most Japanese offers have been reported at $525/mt CFR and above. “Buyers in Vietnam have been showing better appetite for import HRC, but the market remains price-sensitive, with buyers favouring cheaper alternatives from India, Malaysia and Indonesia,” a market insider told SteelOrbis.
Furthermore, a least two deals from two Japanese suppliers have been signed in Pakistan this week at around $496-498/mt CFR for 30,000-35,000 mt to one Pakistani steelmaker, while another Pakistani mill is reported to have booked around 21,000-23,000 mt of HRC at slightly above $500/mt CFR.
Meanwhile, in the Middle East, Japanese HRC has found some acceptance, but competition remains fierce as Chinese suppliers actively target the region with lower-priced cargoes. This has compelled Japanese mills to adjust their achievable deal levels in order to maintain sales momentum. Specifically, a deal for 15,000 mt has been signed at $505-510/mt CFR UAE for end-of-November shipment this week.
Market participants suggest that Japanese mills are likely to keep encountering resistance across these key destinations as long as regional suppliers maintain aggressive pricing strategies. “The gap between offers and concluded deals especially in Asia underscores the limited bargaining power Japanese sellers currently hold in an oversupplied market,” a market insider said.
