Asian HRC prices strengthen as higher costs support mill offers

Asian HRC prices have strengthened in recent weeks, supported by rising raw material costs in China and expectations of improving seasonal demand, although buying interest remains cautious in several markets.

In China, offers from major mills for SS400 HRC are currently heard at around USD 500-515 per ton FOB, compared with USD 500-510 per ton FOB last week. Smaller mills have also raised their offers, with prices approaching USD 500 per ton FOB. The firmer export market follows firmer domestic steel prices and higher production costs, particularly for coking coal. Chinese market insiders said the recent price gains have been driven primarily by higher costs, while expectations of stronger demand during the traditional September-October season are providing additional support. Export demand, however, remains less robust. Overseas buyers have been cautious about following the rapid increase in Chinese offers and are waiting for greater stability in benchmark prices. Market insiders noted that lower-priced export offers have become increasingly difficult to find, but higher offers are still meeting resistance. The market is therefore being supported more by higher costs and expectations of seasonal demand than by a strong recovery in immediate export consumption.

Indian HRC prices have also moved higher, supported by a sharp increase in the domestic market and firmer export offers. Indian mills are currently offering HRC at around USD 520-530 per ton FOB. Domestic HRC prices rose by around USD 25-30 per ton to approximately USD 630 per ton EXW Mumbai. The increase reflects firmer domestic pricing and higher production costs, while market sources also expect demand to improve as the monsoon recedes from around mid-September and construction and infrastructure activity picks up ahead of the festive season.

In Southeast Asia, higher Chinese prices have been reflected in both Vietnamese and Indonesian HRC offers. Vietnam’s domestic HRC prices are currently around USD 522-535 per ton, with Formosa Ha Tinh offering SAE1006 and SS400 material at around USD 522-524 per ton for September-October delivery, while Hoa Phat’s September price was around USD 535 per ton. Local producers continue to face competition from imported material, keeping buyers’ price-sensitive. Imported HRC offers in Vietnam have generally moved higher and are currently heard at around USD 510-540 per ton CFR, depending on origin, grade and shipment period. Chinese material is available toward the lower end of the range, while Indian and Indonesian offers are generally higher. Vietnamese buying interest has improved somewhat as the rainy season approaches its end, but demand remains moderate.

Indonesian HRC prices have followed the broader regional trend, with current offers indicated at around USD 520-530 per ton FOB.

Overall, Asian HRC prices are entering September on a firmer footing, supported by rising raw material costs and expectations of seasonal demand recovery. However, buying interest remains cautious, and further price gains will depend on whether downstream buyers begin accepting higher offers.