Japan's integrated steelmakers are expected to start negotiations shortly on their deals of HR coil exports to the Middle East for September shipments. Until recently, they virtually held back on Middle Eastern deals for HR coil exports as local buyers' bids had stood at a low level of US$400/ton FOB or below.
At present, though, the Japanese steelmakers see an environment that permits HR coil exports to the Middle East at increased prices. For the main factor, HR coil exports out of Russia are on offer to the Middle East at US$540/ton C&F, up US$40-50 from what has prevailed before. Besides, a similar price level is reported for European HR coil offers to the Middle East.
Chances are the Japanese steelmakers will offer their HR coil exports to the Middle East this time at US$500/ton FOB or beyond, according to market sources. The sources expect the Japanese steelmakers to firm up their deals at a price level of US$500/ton FOB for September shipments once local buyers' HR coil imports perk up. |
