Ex-Japan HRC offer prices have fallen sharply in October amid the prevailing bearish sentiment in the local and overseas markets. At the same time, Japanese HRC has remained competitive in all main trade destinations, standing in line with other foreign suppliers. However, given the continuous pressure from other suppliers, coupled with rising availability, the outlook is not very promising at least for one month ahead.
Prices for ex-Japan SAE1006 HRC for the Asian region have slipped to $570-580/mt CFR in late October, compared to $620-650/mt CFR in late September, with the lower end of the range corresponding to the spot offers to Vietnam, while the higher end reflects the offer prices to Pakistan and Bangladesh. Offers for ex-Japan HRC have been reported at $570/mt CFR Vietnam, down by $50/mt month on month and by $10-20/mt week on week, though, according to market insiders, talk about a deal for ex-Japan coils signed $565/mt CFR has already been circulating in the market. “After Japan sold around 15,000/mt of HRC at $595/mt CFR Vietnam, the material changed hands at $587/mt CFR, and so now $565/mt CFR is a reasonable price in Vietnam,” an international trader said. Meanwhile, ex-Japan HRC offers to Pakistan have been reported at around $580/mt CFR, down by $40/mt month on month, but customers from Pakistan have already been voicing their bids at $570/mt CFR this week.
At the same time, offers for ex-Japan SAE1006 HRC to the Middle East have been reported at around $590-600/mt CFR, down by $40/mt over the past month, and are in line with offers from South Korea. According to market insiders, several big deals were signed this month at $600-610/mt CFR the Middle East. Meanwhile, customers from Turkey, which booked around 20,000/mt of ex-Japan HRC during past weeks at $610-615/mt CFR, have reported new ex-Japan offers coming at around $600-610/mt CFR this week.
In the meantime, Japanese HRC suppliers have also been actively offering to the European market in October. Offers for ex-Japan materials have been voiced at €650-670/mt CFR Italy and €670-690/mt CFR Spain, down by €40/mt on average month on month. However, although the prices from Japan are considered to be one of the most competitive in the EU, standing in line with offers from Indonesia, the business activities of Japanese suppliers have been muted in Europe, given the weak demand and overstocking in the region.
Offers for ex-Japan HRC in South America have been heard at $650-660/mt CFR Pacific coast, down by around $50/mt over the past month.