China
Domestic HRC prices in China rose by CNY 50/t ($7/t) on a weekly basis, reaching CNY 3,190/t ($444/t) as of July 19. This upward movement was largely supported by a positive performance on the Shanghai Futures Exchange (SHFE), signaling a modest recovery in trader sentiment.
Export prices followed suit, climbing $8/t to $458/t, indicating improved external demand or at least stronger pricing power among Chinese exporters. However, this short-term optimism is tempered by persistent high inventory levels and sluggish end-user demand, which continue to weigh on the broader market outlook.
Northern Europe
In Northern Europe, HRC prices up by EUR 10/t ($12/t) during the week, settling at EUR 535/t ($640/t) on July 25, marking the lowest level recorded since November 2020.
Southern Europe
Southern Europe experienced a similar trend, with prices dropping EUR 6/t ($7/t) to EUR 520/t ($591/t). Meanwhile, import HRC is available at a more competitive EUR 465/t ($519/t), highlighting growing price pressure from overseas sellers.
A combination of regulatory burdens, including the Carbon Border Adjustment Mechanism (CBAM), safeguard quotas, and additional US tariffs, has created an uncertain environment for both domestic producers and buyers.
Adding further pressure is Indonesia’s growing footprint in the European market.Approximately 70,000 tonnes of HRC were recently sold to Italy at €450/t CFR, while new offers are emerging at €430–435/t CFR, creating intense price competition and threatening to drive local European prices down even further.
In contrast, Ukrainian-origin HRC recently concluded a deal at €470/t CIF Italy for September shipment.
United States
U.S. steelmaker Nucor lowered its hot-rolled coil (HRC) spot price for July 21–27 by $10/t (1.1%) to $900/t, except at California Steel Industries (CSI), where the price dropped to $960/t (-1%). This marks Nucor’s first adjustment since late May, following a mostly stable July after anearly-month increase. The company’s highest price this year was $935/t ($995/t for CSI) in late March.
Meanwhile, Cleveland-Cliffs increased its HRC offer to $950/t as it opened July bookings, up $40/t (4.4%) from June’s level of $910/t.
Brazil
In Brazil, domestic HRC prices increased by $10/t over the past two weeks, reaching $780/t, partly supported by firming raw material costs. High-grade iron ore (65% Fe) rose by $8/t, offered at $114/t CFR, signaling robust demand in upstream segments.
On the export side, the picture is less optimistic. Rebar export prices declined by $10/t over the last month to $850/t, while slab exports dipped slightly by $3/t, now at $472/t FOB. This divergence reflects weakening external demand and rising competition from lower-cost suppliers, especially in Asia and the CIS.
Vietnam
Vietnam has seen renewed interest in wide-width Chinese HRC, which is offered at $470–473/t CFR (up from $463–465/t). This shift is not only price-driven but also tactically motivated, as Vietnamese buyers aim to bypass anti-dumping duties by importing coils wider than 1,880 mm, thus avoiding punitive tariffs.
India
India's hot-rolled coil (HRC) import market remains active and diverse, with competitive offers arriving from several Asian producers. Japanese suppliers are offering SAE1006 grade HRC at $490 per ton CFR Chennai for August–September shipment, with a cargo size of 25,000 tonnes. South Korean mills are quoting slightly higher prices, in the range of $510–515 per ton CFR Chennai. Meanwhile, Chinese exporters are presenting the most competitive offers, with HRC priced at $470–475 per ton CFR Mumbai.
United Kingdom
In the UK, domestic HRC prices stand at £505/t DDP West Midlands. While this is relatively higher compared to continental Europe, the price gap is narrowing as buyers increasingly turn to cheaper Asian and CIS imports.
Russia
The situation on the Russian sheet metal market continues to gradually deteriorate. The apparent demand is unusually low for the summer, and there are no prospects for its recovery in the near future. The Central Bank is expected to lower the key rate by 2 percentage points on July 25, but this will change little. The economy is increasingly suffocating without money, and the government's forced transition to austerity mode is only worsening the situation.
Spot market sheet prices have fallen to the level of the first quarter of 2023. At the same time, the decline has recently accelerated. Due to the narrowing of consumption volumes, supply is becoming excessive. Many metal trading companies are having to think about reducing warehouse stocks. At the same time, manufacturers are trying not to overload their trading houses with metal and are making concessions to large buyers.
Comments
No comment yet.