In June 2025, the Asian HRC market remains stagnant. Domestic demand remains weak, particularly in the construction sector, due to the failure of the expected recovery to materialize, while exports are also under pressure due to global competition and protectionist measures.
Rising stock levels and declining profit margins are prompting many factories to reduce production and proceed cautiously. Market analysts do not expect any moves that could revive the market in the near term.
In China, high inventory levels and low demand are putting pressure on prices, and prices are expected to continue to decline in the coming week. Domestic market prices are not being supported, particularly in the construction sector, where domestic consumption is very low. In addition, prices on the export side remain under pressure due to aggressive policies and competition from China's rival countries. In the last week of June 2025, HRC offers in China were recorded at 445-450 USD/t CFR Vietnam.
Chinese producers are working with low margins to boost exports despite price pressures, and prices can be flexible. Additionally, exports to the European region are currently very limited due to EU safeguard measures.
In India, steel consumption has declined with the onset of the monsoon season, and domestic demand remains limited. With low domestic demand, most producers are turning to exports, intensifying competition. It has been reported that a factory in India has agreed to supply HRC to Europe at a price of 590 USD/t CFR Italy.
In Japan, demand is extremely low and production activities are proceeding slowly. The HRC market is generally calm. A Japanese factory is said to have offered HRC at 495-505 USD/t CFR UAE. Additionally, offers of 500-510 USD/t CFR Vietnam are also being discussed.
However, it is reported that negotiations will take place this week to further reduce these price offers. It is expected that the bottom prices will decline further in the coming days.
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