Following a rather stable price trend in January, Japan HRC exporters have been forced to provide discounts to most foreign customers given the unclear price trend and bearish sentiments appearing overseas, triggered by the price fall in China after the holiday. Besides, pressure has not only been coming from Asia, but also from higher-priced markets like the EU and the Middle East.
Specifically, offers for ex-Japan SAE1006 HRC for the Asian region have settled at $620-650/mt CFR, down by $10-15/mt month on month. According to sources, Japanese HRC suppliers have continued to struggle to attract the attention of Vietnamese buyers, with indicative prices heard at $620-630/mt CFR, compared to ex-China offers at $585-590/mt CFR. Meanwhile, offers for ex-Japan HRC in Pakistan have been voiced at around $630/mt CFR, mainly the same as last month, with occasional deals reported to have been done by big Pakistani mills. In Bangladesh, meanwhile, one of the Japanese mills has been offering at $640-650/mt CFR, with only a few buyers interested in bookings, while another Japanese mill is offering at around $630-640/mt CFR, with several deals reported from non-re-rolling customers. “Re-rollers are aiming for lower prices. Meanwhile, Chinese mills are offering much lower levels at around $600/mt CFR Bangladesh,” a Japanese trader told SteelOrbis.
In the meantime, Japanese suppliers have been offering their coils at $630/mt CFR to the Middle East, down by $20-30/mt over the past month. According to sources, business activity has been rather limited in the region given the tight competition with Chinese and Indian sellers.
At the same time, Japanese suppliers have kept actively offering materials to the European market, though once again facing strong competition with other Asian suppliers, especially those from Vietnam, who have been offering at the most competitive prices. In late February, offers for ex-Japan HRC have been heard at €630/mt CFR southern Europe, against €665/mt CFR in late January.
