Ex-Japan HRC offers prices have increased significantly in January amid the prevailing bullish sentiment in the local and overseas markets. At the same time, Japanese HRC has remained competitive in almost all main trade destinations and, according to one of the biggest Japanese manufacturers, “there is no room for new negotiations as we are almost sold out for March shipment.” Besides, a further increase for ex-Japan HRC to up to $700/mt FOB is expected by most market participants in the short run.
Prices for ex-Japan SAE1006 HRC for Asian region have increased to $670-685/mt CFR in late January, up by $30/mt month on month, with the lower end of the range corresponding to indicative offers to Vietnam, while the higher end reflects the offers to Pakistan and Bangladesh. “In the last two or maybe even three months Asia was not in such great focus for Japanese HRC exporters, amid tough competition with Chinese suppliers and problems with opening LCs in Pakistan and Bangladesh,” an international trader told SteelOrbis.
Meanwhile, offers for ex-Japan SAE1006 HRC to the Middle East have been reported at around $690/mt CFR and above, up by $40/mt over the past month. According to market insiders, several deals were signed last week at $670-680/mt CFR Middle East for March shipment. Meanwhile, customers from Turkey have reported ex-Japan HRC offers at around $690/mt CFR this week, versus $610/mt CFR at the end of last month.
In the meanwhile, Japanese HRC suppliers have also been actively offering to the European market in January. Offers for ex-Japan materials have been voiced at $750/mt CFR southern Europe (around €695/mt CFR), versus €640-650/mt CFR last month.
Offers for ex-Japan HRC in South America have been heard at $700/mt CFR Pacific coast, up by around $20-50/mt over the past month, with several big deals reported at $685-690/mt CFR last week.
