Japanese HRC exporters have failed to avoid declines in prices in June, considering strong pressure from other suppliers along with weaker demand in the main trade outlets. Thus, ex-Japan HRC export prices have fallen sharply so far in June and the outlook is not very promising at least for one month ahead.
Offers for ex-Japan SAE1006 HRC to Asian customers have fallen to $790-830/mt CFR in mid-June, compared to $870-890/mt CFR in mid-May. Sales to Pakistan have been confirmed at $820-830/mt CFR. Besides, according to market insiders, several deals have been signed with Bangladeshi customers at $810-815/mt CFR this week. Meanwhile, Vietnamese customers said HRC offers from Japan are coming at around $790/mt CFR, which is considered to be overpriced, considering that offers for Indian coils are currently standing at $745-750/mt CFR Vietnam, while ex-China offers are at around $750-755/mt CFR.
“Current offers from Nippon Steel are at around $770-800/mt FOB, while some offers from other suppliers have been heard at as low as $750-760/mt FOB level,” a market insider told SteelOrbis.
In the meantime, ex-Japan HRC offers to southern Europe have been heard at around €820-850/mt CFR, compared to €920/mt CFR one month ago. Trading activity has remained muted in the southern European HRC import market considering still weak demand from end-consumers and risks of further spot price drops. “Despite new import HRC offers from Asian customers, including Japan, the interest of most customers is very limited in Europe,” a Spanish trader stated.
Furthermore, ex-Japan coils to South American customers have been offered at around $890-910/mt CFR Pacific coast, down by $60-90/mt over the past month, though the allocations have remained limited for this destination.