Global hot rolled coil (HRC) prices remained largely stable this week despite varying regional market conditions. Ex-China HRC prices from mills held steady, though local sentiment and futures market trends were weaker, leading to lower tradable prices. In Vietnam, Formosa raised local HRC prices by $25/mt, supported by antidumping measures against China. Indian HRC prices also remained stable, with low-priced deals sustaining trade in the Middle East. Turkey's HRC market remained positive, with interest in imports from nearby sources such as Egypt and Russia. The GCC continued restocking HRC, with import offers relatively unchanged. Meanwhile, European HRC prices saw further increases due to tighter domestic and import supply.
This week, most big Chinese mills have rolled over their export prices, while in the local market in China HRC prices have seen decreases compared to the previous week amid declining HRC futures prices. Specifically, export offers for boron-added SS400 HRC given by major Chinese mills are at $470-485/mt FOB for mainly April shipment, the same as last week, though by the end of the week most market insiders have been reporting that most offers are at the lower end of the range at $470/mt FOB. Meanwhile, traders have been more active, though with lower offers, as sentiments have worsened among market players this week. As a result, the tradable level has decreased by around $8.5/mt as compared to traders´ offers last week, standing at $455-460/mt FOB.
In Vietnam, although import HRC prices have indicated new declines this week, Vietnamese steel producer Formosa Ha Tinh (FHS) announced its new local HRC prices for May shipments increasing them by $25/mt since mid-February to $519-529/mt CFR, depending on the quantity. The new prices are viewed by most local buyers as overpriced given the recent fall in ex-China HRC offers, and are supported by the recent announcement of antidumping duties against Chinese HRC rather than by a significant demand improvement, but they have changed market sentiment slightly, giving hope for some recovery in import prices also this month. Offers from Chinese suppliers for SAE1006 HRC have been estimated at $490-495/mt CFR for March-April shipment, the same as last week, while offers from Indonesia for SAE1006 HRC have been ranging at $500-505/mt CFR, following a deal for 30,000 mt of HRC at $496/mt CFR last week. Besides, according to sources, offers for ex-India HRC have been estimated at $510/mt CFR. Thus, the SteelOrbis reference price for import SAE1006 HRC has remained at $495-500/mt CFR, the same as last week, based on the most competitive offers and buyers’ prices ideas.
Ex-India HRC prices have been kept largely stable by local mills at $485-510/mt FOB, with trade activity kept alive by occasional small-volume deals in the Middle East, although deal prices have been at the lower end of the offer range. According to the sources, an eastern India-based mill reported a trade for 5,000 mt for delivery to Qatar at $485/mt FOB, while another seller confirmed a sale for 8,000 mt with a Bahrain-based trading firm at $480/mt FOB. Furthermore, another deal for around 25,000 mt of ex-India HRC has been signed with an UAE-based re-roller at $515/mt CFR, for March shipment, which translates to around $485-490/mt FOB. Besides, some more quantity has been sold to tube makers in the UAE at the same price, according to sources.
In the GCC, the import segment has remained busy, with GCC customers preferring ex-China and ex-India providers this time. According to reports, UAE-based tube makers and stockists bought around 10,000-13,000 mt of SS400 grade HRC from China at $495-500/mt CFR for shipment in March. Meanwhile, SS400 offers from China to the UAE for April shipment are currently available at $495-515/mt CFR. Furthermore, this week Qatar and Bahrain buyers purchased 5,000 mt and 8,000 mt of HRC from India at $485/mt FOB and $480/mt FOB, respectively, which is approximately $510-520/mt CFR. Additionally, Emirati re-rollers also expressed interest and bought 25,000 mt of HRC from India for $515/mt CFR for shipment in March, while offers from India have remained stable at $515-525/mt CFR over the past week. Japanese suppliers, on the other hand, remain silent after selling several lots to the UAE last week, with their offers this week at $510-515/mt CFR and with no fresh sales noted.
In Egypt, while domestic offers have remained at around $570-575/mt CFR for HRC, import offers from China are at $510/mt CFR. In addition, Turkey is offering at $580-585/mt CFR, sources say, while slightly lower levels are also considered possible. As mentioned earlier, Egypt has sold additional volumes to Turkey at $550/mt CFR and the total volume of sales in the past two weeks comes to around 30,000-40,000 mt. Also, an Egyptian HRC exporter, according to sources, has traded around 15,000 mt of HRC to the US at $550/mt FOB.
Turkey’s HRC pricing has been positive this week, inspired by upward moves in Europe, high prices in the US, which create additional export opportunities, and higher scrap prices. Domestic demand has remained rather moderate while offers have increased to $565-580/mt ex-works, up from $555-565/mt ex-works earlier. Export offers are mainly at $565-575/mt FOB, versus $550-560/mt FOB earlier. The latest news about proposed antidumping duties in the EU against Egypt, Vietnam and Japan is considered to provide support for Turkey, since it is subject to lower AD rates than the mentioned countries. However, competition with Algeria, which does not have any duties in the EU will become fierce, market sources expect. In the import segment, Chinese HRC has been fluctuating this week from $485-495/mt CFR to around $495-510/mt CFR, with no deals reported lately. However, Egypt has managed to sell an additional 10,000-15,000 mt of HRC to Turkey at $550/mt CFR on top of the earlier traded cargo at $545/mt CFR. Also, Russia has sold around 30,000-35,000 mt of HRC to Turkey at $500-505/mt CFR, versus the initially targeted $510-515/mt CFR.
The EU HRC market has continued to show upward movement in local prices, with some industry sources believing that another round of price increases for June delivery coils remains a possibility. Offers for mainly May delivery HRC from mills in northern Europe have been reported at €640-660/mt ex-works, up by €10/mt week on week, while offers from Italian mills have been voiced at €610-630/mt ex-works, with most sources claiming that mills are targeting further price hikes for June delivery to at least €650-670/mt ex-works levels. Meanwhile, the tradable price levels have been at €630-640/mt ex-works, against €630/mt ex-works last week and at €610-620/mt ex-works in Italy, mainly the same as last week. At the same time, the market has been processing the details of the safeguard adjustments released on Tuesday, March 11, but it seems that the changes proposed by the European Commission did not meet the expectations of most market players. Import HRC offers from a steel producer in Indonesia have been voiced at around €545/mt CFR, the same as last week, while another Indonesian mill has been offering its coils at €560/mt CFR southern Europe. Offers for ex-Thailand HRC have been reported at €590/mt CFR Spain. Besides, according to sources, a deal for around 60,000-70,000 mt of ex-Malaysia HRC has been signed at €550/mt CFR. Besides, offers for ex-India HRC have been voiced at €590/mt CFR. Besides, HRC offers from Turkey have been reported at €590-600/mt CFR, excluding duty, up by at least €10-20/mt over the past week.