Japanese steel producers have been forced to cut export HRC prices for June shipment due to weak local demand and high competition in the international market. But they have already announced higher offer prices for coils for July shipment.
Order books for ex-Japan HRC have been closed mainly at $380-400/mt FOB for June shipment depending on the sales destination and time for the deal. Japanese suppliers have got contracts from China, Vietnam and some other Southeast Asian countries, the Middle East, Bangladesh and Pakistan.
Offers for July shipment HRC have been announced at above $400/mt FOB – at $415-425/mt FOB. Some market participants said that negotiations at a slightly lower level are also possible, but exporters as usual are evaluating the market situation first before offering discounts.
“There should be some small recovery [in domestic demand in Japan in June] gradually, in the auto industry, for example. But the situation would not change soon or drastic, or have some impact on the steel prices, since we still need to keep our eyes on covid-19 even after the lift of the state of emergency. This would not be a reason for increase in export prices,” a Japanese trader told SteelOrbis. The major reason for ex-Japan HRC price changes will remain the situation in the international market, especially in India and China.
