The global hot rolled coil (HRC) market remains subdued, with regional trends showing a mix of stability, slight rebounds and continued pressure from weak demand. Ex-China HRC offers have seen a mild rebound, though overall trade activity remains limited. In India, prices are stable across a wide range, but trading is largely silent. Vietnam's Formosa Ha Tinh has delayed announcing new HRC prices, while import offers continue to fluctuate, reflecting market uncertainty. Meanwhile, buyers in the UAE have booked several competitive cargoes from Japan, highlighting the selective purchasing in the region. Meanwhile, in Turkey, the market mood has weakened due to falling scrap prices and lower domestic demand. European HRC prices remain stable, but currency volatility is dampening sentiment across the region.
Although a slight increase in ex-China HRC offers was observed at the beginning of the week, supported by a modest rebound in HRC futures prices, most Chinese HRC suppliers have remained quiet in terms of export sales. At the same time, the most competitive offers from traders have been heard at $455/mt FOB, which is mostly unchanged from last week. Meanwhile, average HRC prices in the Chinese domestic market have edged down compared to the previous week amid pressure from the demand side. More specifically, offers for ex-China boron-added SS400 HRC from large mills have settled at $465-470/mt FOB, with a midpoint at $467.5/mt FOB, up by $2.5/mt week on week, though, according to sources, some mills have been aiming for $495/mt FOB, while most market insiders estimate this level as “totally uncompetitive and out of the market”. Meanwhile, offers from smaller mills have been voiced at $455-460/mt FOB, up by $5/mt on the lower end of the range week on week.
Ex-India HRC prices have been kept largely at $500-570/mt FOB, stable across a wide range in the past week amid near silent trade activity, with buyers in the Middle East reported to be fully stocked for now and distributors in Europe still not looking at imports despite local prices seeking higher levels. More specifically, ex-India HRC offers are reported at $500-520/mt FOB with higher levels quoted to buyers in the Middle East, but no deals have been confirmed by any large seller. Meanwhile, according to sources, only a few deals for small volumes have been reported at $498/mt CFR to Nepal, “going via Haldia port, from China”. Meanwhile, a few eastern India-based mills are heard to have submitted offers at around $640-645/mt CFR Europe. which translates to around $570/mt FOB, the same as last week. According to sources, bid-offer gaps are quite wide in the most traditional destinations, i.e., the EU and the Middle East, with sellers unwilling to bridge them to push sales. At the same time, ongoing sales negotiations are active in Europe, but success is elusive in the face of the uncertainties of trade flows and risks from the continued weakening of ex-China offers.
Vietnamese steelmaker Formosa Ha Tinh Steel (FHS) has yet to announce official HRC prices for June shipments, reflecting ongoing market uncertainty and fluctuating import prices. While no formal offers have been released, market sources suggest unofficial pricing around $520–522/mt CIF, slightly down from March's $520–529/mt CIF. Import HRC prices in Vietnam continue to vary, with ex-China 2,000 mm Q235 HRC offers dropping to $468–470/mt CFR and Q195 HRC offers at $475/mt CFR. Meanwhile, ex-China SAE1006 HRC is offered at $485–490/mt CFR, with offers from Japan, South Korea, and Indonesia estimated at $510/mt CFR. SteelOrbis maintains its reference price for import SAE1006 HRC at $485–510/mt CFR.
In Turkey, the fall in the import scrap segment and the general pessimistic mood coupled with the lack of domestic demand have put pressure on the mills to provide discounts on their HRC prices. While in the export markets it has resulted in some sales, trade locally has remained subdued. Local prices for HRC in Turkey have slid from $590-600/mt and as high as $610/mt ex-works seen last week to $580-590/mt ex-works as a realistic level currently. As regards exports, prices are at $570-580/mt FOB in general with some significant sales closed to the EU. However, some sources reported HRC export prices from Turkey at as low as $550-560/mt FOB. Import offers from China have continued hovering at around $480-490/mt CFR with little fluctuations seen during the week, while no new deals have been confirmed lately, with the workable levels assessed at $470-475/mt CFR maximum. Egypt has been offering at $570/mt CFR versus $550-555/mt CFR in bids, while, according to sources, a Malaysian cargo was sold to Turkey last week at $560/mt CFR. Russia, based on the information from the market, has managed to sell around 40,000 mt of HRC since last week at $500-505/mt CFR and slightly higher. However, some players reported deals for the mentioned origin at as low as $490-495/mt CFR.
In Egypt, the domestic HRC price levels have remained stable at $565-570/mt ex-works depending on the exchange rate. As for exports, the supplier is targeting around $570/mt CFR Turkey, as mentioned above, which is around $555-560/mt FOB. In the import segment, HRC offers from China have slid over the past week from $505-510/mt CFR to $500-505/mt CFR.
In the UAE, while HRC import prices span a wide range, Emirati buyers, who were previously cautious towards purchasing, have indicated an interest in Japanese material by the end of the week. As a consequence, Japan sold 25,000 mt and 16,000 mt of HRC to two different UAE re-rollers for shipment in July at $505/mt CFR. Previously, Japan had offered to the UAE at around $520/mt CFR. On the other hand, this week's SS400 grade HRC offers from China remain almost unchanged from last week, at $495-505/mt CFR for May shipments. However, due to weak demand, a few traders have started to offer at around $485-490/mt CFR. Furthermore, this week, China SAE1006 HRC has been reported at $520/mt CFR UAE. In contrast, Indian suppliers’ prices have remained the highest and most difficult to achieve in the market, at $540-550/mt CFR for May shipments. Due to the limited trade in the region, Taiwanese suppliers have remained mute regarding fresh offers.
European domestic HRC prices remained largely stable over the past week but are now showing early signs of decline, driven by the euro-dollar currency fluctuations and shifting trade flows. Northern European mills have maintained June-July offers at €670–700/mt ex-works, while Italian mills have lowered their range to €650/mt or below. Tradable prices have held at €640–650/mt in the north and €620–630/mt in Italy, but market sentiment suggests the recent price uptrend may be over. Competitive import offers, especially amid currency fluctuations, are pressuring mills to consider price reductions. Import prices in southern Europe have ranged at €545-600/mt CFR, with the most competitive ex-Indonesia offers at around €540/mt CFR. Indian mills are offering HRC at approximately €545–567/mt CFR, while recent deals for ex-Turkey HRC have settled at €580–600/mt CFR, including duty.