Japanese producers have become more interested in selling HRC for October shipment abroad due to the expected rebound of offer volumes following planned repairs in September at some mills. In October, production of HRC at Nippon Steel will increase by about 150,000 mt month on month, SteelOrbis is informed. “Apart from Nippon, JFE Steel and Kobe Steel will also have higher volumes for sale,” a Japanese trader confirmed.
The lowest level for ex-Japan HRC has been heard in Asia. A deal for 10,000 mt has been concluded in Vietnam at $470/mt CFR for October shipment, $15-25/mt below previous offers in August. Such a low level has come from the Japanese supplier due to tight competition in this market. Overall demand in Southeast Asia and Pakistan has been subdued and Japanese prices have not been attractive for customers.
For other Asian countries, including India, offers have been coming at $480-485/mt CFR, which is at least $10/mt below offers in the second half of August.
Some demand has been seen in the GCC, where about 20,000 mt of Japanese HRC have been sold at about $490/mt CFR, but such a high price is mostly connected with customers’ need to replenish stocks with high quality coils. Offers for Indian HRC to the UAE have already touched $475/mt CFR.
“Mills are hungry at the moment,” a Japanese trader told SteelOrbis.