Japanese hot rolled coil (HRC) suppliers have faced tighter competition in the international market as Indian exporters are still interested in sales to Asia, while South Korean mills have also become more aggressive. Nevertheless, Japanese suppliers have managed to avoid sales at very low levels so far.
A contract for commercial quality HRC ex-Japan has been signed to China at $430-440/mt CFR, SteelOrbis has confirmed. It is a non-traditional situation as China was importing only special-purpose coils earlier, having enough commercial HRC capacities. “This was quite a good price for Japanese sellers,” a Japanese trader said. At the same time, there has been information in the market that ex-South Korea HRC has been sold to China at $10-15/mt lower.
Offers for ex-Japan HRC have been coming to Bangladesh at $430-440/mt CFR for December shipment, while ex-India HRC has been available at $420-425/mt CFR. However, the tradable level for Bangladesh and some other Asian countries like Vietnam has already slipped to $410/mt CFR, sources said. In Vietnam, the latest offers ex-Japan have been heard at a minimum of $430/mt CFR, while ex-South Korea HRC have been offered at $420/mt CFR this week.