Japanese HRC exporters have remained bullish since October, increasing their prices further following the uptrend in the global market. However, Japanese sellers have become less competitive in most of their main trade destinations, as competition with other suppliers, especially those from China, has been tough.
Specifically, prices for ex-Japan SAE1006 HRC for the Asian region have increased to $600-620/mt CFR in late November, up by $10-20/mt over the past month. Following several big batches sold in Pakistan and Bangladesh in October at $585-590/mt CFR and $590-600/mt CFR respectively, in November ex-Japan HRC sales have been rather limited, while new offers have increased to $620/mt CFR Pakistan and $610-615/mt CFR Bangladesh. “Bangladeshi pipe makers have been bidding at $570/mt CFR, while re-rollers have still been aiming for not higher than $600/mt CFR. But apart from prices, another big problem is the impossibility of opening letters of credit in Bangladesh,” a Japanese trader told SteelOrbis.
Meanwhile, in Vietnam, there have been limited Japanese HRC offers at $600/mt CFR, while cargoes from China have been booked at $575-580/mt CFR level.
“While Japanese mills are targeting $600/mt FOB now, they will be able to sell at not higher than $570/mt FOB in Asia, as buyers are resisting hikes so far,” an international trader said.
Meanwhile, offers for ex-Japan SAE1006 HRC to the Middle East have been reported at around $620/mt CFR, up by $20-30/mt month on month. However, no deals have been heard in this destination as, according to sources, buyers from the Gulf region have been delaying bookings in response to the recent increase in import HRC prices given the sluggish business activity in the local market, while they have been receiving more attractive offers from China at around $600/mt CFR.
In the meantime, Japanese HRC suppliers have kept actively offering to the European market in November, though deals have been rare amid the slow demand in the region and later lead times for ex-Japan materials as compared to domestic HRC. Offers for ex-Japan HRC have been voiced at €630-650/mt CFR for delivery in February and March, up by €10-20/mt month on month.