Ex-Japan HRC offer prices have been corrected downwards in November in most of the main destinations given the continuous weakening of local and overseas demand. At the same time, Japanese HRC offers have remained among the most competitive among all foreign suppliers, while the focus of the suppliers remains mainly on the higher-priced destinations, such as Europe, the Middle East, Turkey, and South America, rather than on Asia.
Prices for ex-Japan SAE1006 HRC for the Asian region have settled at $550-590/mt CFR in late November, compared to $570-580/mt CFR last month, with the lower range corresponding to spot prices to Vietnam, while the higher end reflects offers to other Asian countries, like Pakistan and Bangladesh. “It is hard to sell big volumes to Vietnam as demand leaves much to be desired, while there has been a serious dollar crisis in Bangladesh and Pakistan, which makes it difficult for customers to open LCs or secure US dollars,” an international trader told SteelOrbis.
In the meantime, offers for ex-Japan SAE1006 HRC to the Middle East, the UAE in particular, have been voiced at $580/mt CFR, down by $20-30 month on month, with a deal for around 10,000/mt reported to have been signed with one of the main Japanese mills at the abovementioned level this week. Besides, customers from Turkey have reported ex-Japan HRC offers at $580-590/mt CFR, down by $20/mt month on month, while most buyers are expecting prices to fall further.
Japanese HRC suppliers have continued to focus on the European market as well, decreasing their offers by €50-70/mt over the past month to €600/mt CFR southern Europe. However, although the prices from Japan have been staying in line with other Asian suppliers’ prices and are considered as the most competitive in the EU, business activities have remained muted in Europe, given the weak demand and the overstocking in the region.
Offers for ex-Japan HRC in South America have been voiced at $595-605/mt CFR Pacific coast, with a few deals reportedly signed at this level.
At the same time, more inquiries have been coming from Indian suppliers during the past months. After numerous deals were reported in November to India, the indicative offers for ex-Japan HRC have been heard at $570/mt CFR India this week, compared to $550-560/mt CFR last week.
