Following a rather stable price trend in August, 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 price falls in China. Besides, pressure has not only been coming from Asia, but also from higher-priced markets like the EU and Middle East.
Specifically, offers for ex-Japan SAE1006 HRC for the Asian region have settled at $590-600/mt CFR, down by $10/mt over the past month. According to sources, Japanese HRC suppliers have continued to struggle to attract the attention of Asian buyers given tough competition with Chinese suppliers. In Vietnam, for instance, coming towards September, offers from Japan have been reported at $590-600/mt CFR, while China SAE1006 HRC offers have settled at $575/mt CFR. In Pakistan, several sizable bookings were reported in September at $600-610/mt CFR, while by the end of the month ex-Japan offers have been estimated at $590/mt CFR.
In the meantime, Japanese suppliers have been active in HRC sales to the Middle East, selling around 22,000 mt of SAE1006 HRC to the UAE at $592-595/mt CFR coming closer to the end of the month. “Our deal prices in the Middle East are at $560/mt FOB or $590/mt CFR for big clients and at $570/mt FOB or $600/mt CFR for smaller ones,” one of the biggest Japanese producers told SteelOrbis.
At the same time, Japanese suppliers have kept actively offering materials to the European market, though once again facing strong competition from other Asian suppliers. In late September, offers for ex-Japan HRC have been heard at €600-610/mt CFR southern Europe, down by €10/mt over the past month. According to European customers, import trade activity has been close to zero and is not expected to revive until early October when the next EU safeguard import quota period will start.
