Japanese HRC exporters have been not very aggressive in May and have resisted cutting prices in major sales destinations after the increases announced a month earlier. There has been no big pressure from the supply side, while major buyers have also been staying inactive, not ready to accept current offers.
Prices of ex-Japan SAE1006 HRC for the Asian region are at $580-610/mt CFR in late May-early June, narrowing from $560-630/mt CFR seen a month ago. “Allocation for July-August shipment HRC is not that high as supply from JFE seems tight, while NSC is stable,” a Japan-based source said. Generally, after the increase in April, Japanese exporters have been insisting on these higher levels, and a few deals were done with an increase of about $20/mt higher compared to April. Nevertheless, buyers in some outlets have decided to stay away from purchases from Japan, waiting instead for discounts.
Some sales of ex-Japan HRC in Bangladesh were done at around $580-585/mt CFR before Eid, up from $560/mt CFR seen a month ago. The price level from Japan to Pakistan was $575/mt CFR before the holiday in late May, while most market sources agree that $580/mt CFR is the tradable ex-Japan level in the region.
Official offers for SAE1006 HRC from Japan to Vietnam are still at $610/mt CFR (just slightly changed from $610-630/mt CFR in early May). No sales have been heard to this destination. “But Japan is being careful as they don’t want any AD in another market. The problem is Japan has few options now - with the EU, US and South Korea all gone for them - they can’t risk Vietnam. And freight to the Middle East is so expensive compared to that from India,” an Asian trader commented.
There have been very limited offers from Japan to the GCC market over the past month, with the indicative levels assessed at $620-630/mt CFR for SAE1006.
