Steel producers from Japan and South Korea have become more active in the export market, seeing a slowdown of consumption in their local markets and increased competition with Chinese sellers in February. They have cut prices for customers in Asia and in other countries outside of the region, trying to accelerate sales.
The deal prices for both Japanese and South Korean HRC have been heard at $450-460/mt FOB for April shipment, while transactions levels were at $470-480/mt FOB in mid-February.
Early this week, up to 30,000 mt of ex-Japan SAE1006 HRC were traded at $470/mt CFR Vietnam (corresponds to $450/mt FOB), which is $15/mt below the previous price level, according to a number of sources in Vietnam. And though the deal has not been confirmed by the seller’s side to SteelOrbis so far, the price level reflects the current market, sources have said. New offers have been heard at $475-480/mt CFR Vietnam ($455-460/mt FOB).
Ex-Japan offers to Spain have been heard at $485/mt CFR, which is equivalent to $450-455/mt FOB. There have been no reports of contracts yet, but this is only a matter of time, according to insiders, as at the moment ex-Japan offers are the most competitive among import prices in Europe. “This is indeed a very good price for this kind of quality,” a distributor form southern Europe told SteelOrbis.
The latest price from Japan to Turkey has been at $490/mt CFR ($455-460/mt FOB). The same level was reflected in deals from South Korea to Turkey in late February.
Offers for ex-S. Korea SAE1006 HRC to Vietnam have been heard at $475-480/mt CFR ($455-460/mt FOB), but there have been no reports of deals. “In mid-February, POSCO sold at $470/mt FOB, but current bids are $450-460/mt FOB,” an Asian source said.
Customers from some Asian countries are still waiting for lower prices from Japan and South Korea as they have not received new prices recently. “Deals [for SAE1006 HRC] from China were already at $470-480/mt CFR and we expect the same price from Japanese mills in the near future,” a Japanese trader said.