Ex-Japan HRC offer prices have moved down in August amid the prevailing bearish sentiment in the local and overseas markets. At the same time, Japanese HRC offers which were out of the range of buying interest for most customers during the last months, have become more competitive in August.
Prices for ex-Japan SAE1006 HRC for the Asian region have slipped to $620-650/mt CFR in late August, compared to $650-700/mt CFR in late July, with the lower end of range corresponding to the spot offers to Vietnam, while the higher end reflects the deal prices to Bangladesh. “Several deals for ex-Japan HRC have been signed with Bangladeshi customers at around $650/mt CFR for September – October shipment, compared to deals at $700/mt CFR done last month,” an international trader told SteelOrbis. Meanwhile, ex-Japan HRC offers to Pakistan have been reported at $630-640/mt CFR, down by $20/mt month on month.
At the same time, offers for ex-Japan SAE1006 HRC to the Middle East have been reported at around $640/mt CFR, which are in line with offers from India and around $30/mt lower than those from China. According to market insiders, although no deals for ex-Japan SAE1006 2 mm coils have been reported so far, the customers are in negotiations. Besides, last week, a deal for around 3,000-5,000/mt of ex-Japan special grade HRC was signed at $690/mt CFR the UAE.
In the meantime, business activity of Japanese HRC suppliers in Europe has been close to zero in August due to the summer holidays in the region. However, this week, new offers for ex-Japan coils have been voiced in southern Europe at $660-670/mt CFR, SteelOrbis learned from one of the largest Japanese mills. This means that prices have lost $100/mt on average over the past month. “European customers have started to return to the market this week, and we think there will be a chance to sell there but only if sellers provide discounts as their [European] local prices are tumbling,” an international trader stated.
