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| Global Hot Rolled Coil |
European HRC Prices Rise Amid Supply and Demand Dynamics
Global hot-rolled coil (HRC) prices have increased in early November, driven by stable demand in Europe and the US. In Europe, offers in Western Europe and Italy rose 1.7% to €610/t and €605/t Ex-works. Meanwhile, Southern Europe import offers climbed 5.3% to €500/t CIF, the highest since early October.
The main factor was negotiations with the automotive industry, where producers demanded €60-100/t increases. In contrast, supply constraints from cold-rolled and HDG segments reinforced domestic pricing. However, subdued service center demand limits immediate growth despite higher quotations.
A moderate price rise of €10-20/t is expected by year-end. Therefore, European mills strengthen positions amid CBAM uncertainties and limited import competitiveness.
US and Chinese Market Divergence
In the United States HRC prices surged 4.1% to $970/t, reaching the highest level since August. US producers like Nucor and NLMK USA implemented weekly price increases and capacity management. Meanwhile, spot market availability slightly decreased, forcing buyers to accept higher prices.
Conversely, China’s HRC prices fell 3.1% to $470/t FOB. Seasonal slowdowns and flat steel production outpacing long steel pressured the market. Export competition from Japan, India, and Indonesia further restrained price growth. As a result, only targeted production cuts or policy incentives could stabilize prices before year-end.
Outlook and Market Implications
Overall, the global HRC market shows regional divergence. Europe and the US maintain upward momentum, while China faces continued pressure. Therefore, traders and mills must carefully monitor supply constraints, contract negotiations, and seasonal demand fluctuations.
ScrapInsight Commentary
European and US HRC markets show resilience, supported by supply discipline and contract negotiations. Conversely, China faces seasonal demand decline and export pressure, limiting price recovery. Regional divergence highlights strategic opportunities for traders and mills managing global steel supply.
