Following the global price trend, prices for Japanese hot rolled coil (HRC) in the export markets have changed significantly over the past month, increasing by around $30-40/mt depending on the destination since late September. At the same time, trade activity for Japanese HRC has been limited due to the strong pressure from Chinese suppliers who have been decreasing their prices since mid-September.
Prices for ex-Japan SAE1006 HRC for the Asian region have settled at $535-545/mt CFR in late October, versus $500-510/mt CFR in late September. In Vietnam, offers for ex-Japan SA1006 HRC have been voiced at $540-545/mt CFR, up by $30/mt month on month, while interest in Japanese coils has remained close to zero due to tight competition with Chinese suppliers, whose offers are $20-25/mt lower as compared to Japanese offers. Offers for ex-Japan HRC in Pakistan have been reported at $540/mt CFR and have been more competitive as compared to Chinese prices at $535/mt CFR, though most customers have been insisting on additional discounts. Offers from Japanese suppliers to Bangladesh have been heard at $535-540/mt CFR, against $510/mt CFR in late September.
In the meantime, Japanese HRC suppliers have been offering their SAE1006 HRC in the GCC region at around $550/mt CFR, versus $495-510/mt CFR in late September. According to most buyers, the current price level is “too high to be acceptable” due to the much lower prices for ex-China HRC.
Offers for ex-Japan HRC in Europe have been heard at around €575/mt CFR, up by €30/mt over the past month, though no fresh deals have been reported so far since, according to most European buyers, “It seems that no one is interested in purchasing HRC from Japan, Vietnam, India and Egypt due to antidumping risks.”