Japan: Weak Export Market for HRC

Japan HRC export market goes down because of feeble competition with other Asian suppliers. 

Japan HRC export market situation has got worse because of tougher competition with Chinese suppliers and negative conditions in the segment for raw materials. As a result, Japan's exporters have reduced offers to regional buyers by USD 10-20/MT in two weeks.

Leading flat producers are selling HRC 2 mm thick of SAE1006 grade at USD 570/MT FOB October-November shipment. Indian clients are not interested in imports because of the rupee depreciation, whereas Middle Eastern customers prefer cheaper material from China.

The competition with other Asian suppliers is poor. Taiwan offered at USD 575-580/MT FOB and South Korean HRC is on sale at USD 580-590/MT FOB. Chinese merchants offer HRC for rerolling at USD 560-570/MT FOB, down USD 15-20/MT from two weeks earlier.

Japanese producers are not going to make new reductions in spite of the big decrease in Chinese offers, specified that high demand in the domestic market. September output from Tokyo Steel is quoted to local distributors at USD 622/MT EXW without 5% VAT. Because of the national currency depreciation, prices have lost USD 9/MT in the US dollars.