In the first week of June, hot-rolled coil (HRC) prices across key markets have come under pressure as deteriorating sentiment and limited trading activity weigh on the global steel sector. In China, export prices have dropped sharply following further declines in HRC futures and weakening domestic demand. The bearish mood has led to aggressive price cuts from both mills and traders. Meanwhile, ex-India HRC prices have remained largely stable, but global buyers have shown little interest amid muted demand in overseas markets. In Vietnam, leading producer Hoa Phat has kept domestic HRC prices unchanged, even as sentiment in the import segment continues to worsen. At the same time, Turkey’s local HRC prices also held steady, though import offers have edged slightly lower in response to limited buying interest. In Europe, trading activity has remained subdued, with buyers reluctant to commit amid expectations of further price declines. Overall, low confidence and weak demand has continued to dominate the HRC market landscape.
Chinese hot-rolled coil (HRC) export prices declined again this week, pressured by falling futures and sluggish local demand. Major mills reduced offers for boron-added SS400 HRC to $450–465/mt FOB, while smaller mills quoted $445–450/mt FOB. Traders were more aggressive, pushing prices down by up to $15/mt, though trading remained limited. Tradable levels for ex-China SS400/Q235 HRC dropped to $435–445/mt FOB. In Vietnam, Q235 HRC offers fell to $450–455/mt CFR, and in Turkey, Q195 HRC was offered at $470–475/mt CFR, with a 45,000 mt deal reported at $470/mt CFR. Gulf buyers received offers at $475–480/mt CFR, with deals concluded at $477/mt CFR. Despite expectations of a correction, many see the current price cuts as overly steep given the weak but stable demand environment.
Vietnamese steelmaker Hoa Phat Group has announced its local HRC prices for July shipment, keeping them unchanged from May levels despite rising competition from low-priced Chinese imports. On June 3, Hoa Phat has set its new prices for SS400 and SAE1006 HRC at VND 13,360–13,390/kg CIF (equivalent to $512–513/mt), resisting downward pressure from falling import offers. According to market insiders, Hoa Phat’s pricing strategy may reflect expectations of improved domestic demand ahead of the rainy season, coupled with reduced competition in the SAE1006 segment due to the limited availability of Chinese supply under current trade restrictions. Market sources have expressed concern that the announced levels are too high, especially given the recent drop in ex-China Q235 HRC prices. Offers for 2,000 mm Q235 HRC not subject to anti-dumping duties have fallen to $450–455/mt CFR Vietnam, down from $465/mt CFR the week before. While ex-China offers for SAE1006 HRC have remained limited due to trade restrictions and are largely unattractive to Vietnamese buyers, indicative prices have eased to $475–480/mt CFR, compared to $480–485/mt CFR last week. Other import offers for SAE1006 are still holding at $490–505/mt CFR, depending on the supplier.
Ex-India HRC export prices have remained unchanged over the past week, but trade activity has slowed significantly as Indian mills face mounting pressure from aggressive Chinese competition and weak overseas demand. Offers for the Middle East have stayed at $520/mt FOB, yet Indian material is struggling to compete as ex-China HRC has been booked at $475–480/mt CFR in several deals, making Indian offers less attractive. “Even $520/mt FOB is already a low target for Indian mills, who hope to secure higher prices in Europe,” an Indian trader noted. In Europe, ex-India HRC prices have been maintained at $570/mt FOB, but the level is considered unworkable as local European mills continue to lower prices amid persistently weak demand. Expectations of a market recovery have not materialized, leaving buyers cautious and distributors hesitant to place import orders.
In Turkey, HRC prices in the domestic market have settled at $550-565/mt ex-works for July-August deliveries with minimal activity seen from the buyers’ side, taking into account the short working week. On exports, the official price level is at $540-545/mt FOB and slightly up from some suppliers, while $530-535/mt FOB levels are also considered possible for large orders with sizeable extras. Import offers from China have been reported at $468-471/mt CFR through most of the week with the latest deal closed at $470/mt CFR for 45,000 mt. Russia, according to sources, has traded July volumes at $480-490/mt CFR for non-sanctioned material versus $490-500/mt CFR in the initial offers. Egyptian HRC has been priced at $552/mt CFR down from $560/mt CFR in small deals last week. Malaysia is currently out of the market with latest orders closed to Turkey at $550/mt CFR, while the today’s buyers’ price idea is closer to $525-530/mt CFR which, according to traders, will not be considered workable by the supplier.
The European HRC market has remained subdued this week, with limited buying activity across both northern and southern Europe. Persistently weak demand and expectations of further near-term price declines have continued to weigh on sentiment, as mills attempt to fill order books ahead of the summer slowdown. In northern Europe, domestic mill offers for July deliveries were voiced at €630–640/mt ex-works, slightly down €5/mt week on week. However, tradable values have slipped to €615–630/mt ex-works, compared to €620–640/mt ex-works last week. In Italy, mills’ offers have remained stable at €620/mt ex-works, though workable prices have dropped to €580–600/mt ex-works, down from €590–600/mt ex-works. Import activity has also been muted. Offers in southern Europe for imported HRC have settled at €520–550/mt CFR, €20/mt lower on the higher end of range week on week. Indonesian mills were active at the low end around €510–520/mt CFR, though lower prices at around €500/mt CFR has been also reported this week of one of the Indonesian mills. Offers from India fell to €535–550/mt CFR, down from €555/mt last week, while offers from Taiwan have been reported at around €555/mt CFR. Furthermore, ex-Turkish HRC have been estimated at €530/mt CFR, duty paid. Ex-Saudi Arabia material has been heard at €540/mt CFR, while ex-Algeria HRC offers have been voiced at €527-530/mt CFR. Despite ample availability, subdued demand and falling import prices continue to challenge both domestic and overseas HRC sellers in Europe.