Following the global price trend, prices for Japanese hot rolled coil (HRC) in export markets have changed slightly over the past month, decreasing by around $5-20/mt since late January depending on the destination. At the same time, trade activity for Japanese HRC has improved despite the strong pressure from Chinese suppliers who have kept decreasing their offers during the past month.
Prices for ex-Japan SAE1006 HRC for the Asian region have settled at $500-515/mt CFR in late February, versus $510-525/mt CFR in late January. In Vietnam, offers for ex-Japan HRC have been voiced at around $500-510/mt CFR, mainly the same as last month, and, although trade activity has been slow to this destination in February due to tough competition with Chinese suppliers, most market insiders are more positive in terms of trade in the short run given the imposition of antidumping duty (AD) against Chinese coils in Vietnam later in the month.
Trade activity in Pakistan, however, has been better for Japanese suppliers in February. According to sources, in late February, a deal for around 20,000 mt of ex-Japan HRC has been signed at $500/mt CFR Pakistan, down by $10-20/mt over the past two weeks. Besides, according to sources, another Pakistani producer has also been negotiating to close a deal with Japan at $500-505/mt CFR levels, while the initial offer was estimated at around $510/mt CFR. Thus, ex-Japan HRC prices decreased by around $20/mt month on month in Pakistan.
Furthermore, market insiders have reported several deals for ex-Japan HRC in India during past weeks. More specifically, following a deal for around 30,000 mt of ex-Japan HRC signed at $490/mt CFR two weeks ago, another deal for around 30,000 mt of ex-Japan HRC has been signed at $485/mt CFR April shipment at the end of last week. “Japan sold several vessels to India at $485/mt CFR,” an Indian trader told SteelOrbis.
Offers for ex-Japan HRC in Bangladesh have been voiced at around $510-515/mt CFR, against $515-525/mt CFR in late January, though most buyers’ bids have been reported at $510/mt CFR and below.
In the meantime, offers from Japanese suppliers to the Middle East have been voiced at $510-515/mt CFR, down by $5/mt month on month. Although trade activity has been moderate in the region, current offers from Japan are considered as “rather competitive” compared to those from India and Taiwan, though higher than those from China by at least $10-15/mt.
At the same time, Japanese suppliers have remained out of the European market due to trade restrictions. By late February, indicative offers for ex-Japan HRC have been estimated at €560/mt CFR, up by €10/mt month on month driven mainly by higher local prices in the region, though no deals have been reported.