Following the global price trend, prices for Japanese hot rolled coil (HRC) in the export market have not changed much over the past month. As a result, Japanese HRC offers have remained competitive in almost all main trade destinations, especially in higher-priced markets like the EU, standing in line with other foreign suppliers.
Offers for ex-Japan SAE1006 HRC to Asian customers have settled at $620-650/mt CFR in late September, the same as last month, with the lower end of the range corresponding to the spot offers to Vietnam and Pakistan, while the higher end of the range reflects offers to Bangladesh and Indonesia. Several deals for ex-Japan HRC have been reported in Pakistan and Bangladesh, though in Vietnam no deals for ex-Japan HRC have been heard as traders have been trying to collect bids at $620-630/mt CFR, but buyers have been unwilling to pay above $610/mt CFR so far.
At the same time, offers for ex-Japan SAE1006 HRC to the Middle East, the UAE in particular, have been reported at around $630-640/mt CFR, compared to $640/mt CFR in late August, while they are in line with offers from China, South Korea, Taiwan and India.
In the meantime, business activities of Asian suppliers, including the Japanese, have started to revive in Europe in September, considering the significant increase in local prices in the EU. Offers for ex-Japan coils have been voiced at €700-720/mt CFR southern Europe, up by €40-50/mt over the past month. “Most European buyers are increasingly looking to January delivery import material to satisfy purchasing requirements for next year, so we see business opportunities in this destination,” a Japanese trader told SteelOrbis.
According to market insiders, offers for ex-Japan HRC in South America have been heard at $700-720/mt CFR, which are considered to be the highest, compared to more attractive offers coming from China at $665-680/mt CFR and from South Korea at around $680-690/mt CFR.
