Japanese HRC exporters have remained bullish since January, increasing their prices further following the uptrend in the global market. However, despite the price growth, Japanese HRC suppliers have remained competitive in almost all the main trade destinations, though competition with other suppliers, especially those from China and India, has remained tough.
Prices for ex-Japan SAE1006 HRC for the Asian region have increased to $690-720/mt CFR in late February, up by $15-20/mt month on month. Limited sales to Pakistan and Bangladesh have been heard over the past month given the liquidity issues in both countries. According to sources, a deal for around 20,000 mt of ex-Japan SAE1006 HRC has been heard at $720/mt CFR Pakistan this week, following weeks of silence. Meanwhile, offers to Bangladesh have been heard at $720/mt CFR, though, according to market insiders, new offers are likely to be voiced at $750/mt CFR this week. In Vietnam, there has been no interest in Japanese HRC offered at $690-700/mt CFR, while cargoes from China have been booked at around $670/mt CFR. However, despite the competition with Chinese suppliers, Japanese exporters have managed to succeed in South Korea, selling several cargoes at $680/mt FOB (around $700/mt CFR) this week.
“Most offers for ex-Japan HRC for April-May deliveries have been at $680/mt FOB on average, but the prices are moving up, and so we expect around $700/mt FOB,” an international trader told SteelOrbis.
Meanwhile, offers for ex-Japan SAE1006 HRC to the Middle East have been reported at around $740/mt CFR, up by $50/mt over the past month. Although no deals have been heard at this destination as, according to sources, buyers from the Gulf region have been receiving more attractive offers from China and India at $690-700/mt CFR and $720-730/mt CFR, respectively.
In the meantime, Japanese HRC suppliers have kept actively offering to the European market in February. Offers for ex-Japan materials have been voiced in southern Europe at €740/mt CFR and above, up by €45/mt month on month, though, according to market insiders, a deal for ex-Japan SAE1006 HRC has been reported in Spain at around €720/mt CFR this week.
