- Higher iron ore, coking coal costs squeeze mill profits
- Chinese major Baoshan announces hike for Mar’26 shipments
Japan Metal Daily: The Asian hot rolled coil (HRC) market is showing clear signs of bottoming out as major regional players begin to push for higher prices. Vietnamese steel giant Hoa Phat led the movement this week, announcing a $5/t increase for domestic HRC, bringing the price to approximately $500/t.
Moreover, China’s Baoshan Steel has announced a price hike of RMB 100/t ($14/t) for March 2026 shipments. This move reflects growing optimism for a post-Lunar New Year demand surge as the Chinese market returns from the Spring Festival holidays.
Rising raw material costs squeeze profitability
The primary driver behind these price adjustments is the increasing cost of production. International iron ore prices are hovering near $110, while coking coal prices have also trended upward. These rising input costs have significantly pressured the margins of blast furnace manufacturers, making current price levels unsustainable and forcing mills to pass costs onto the market to maintain profitability.
Supply stabilization from India
The surge of low-priced Indian HRC exports into Vietnam, which weighed on regional prices, has stabilized. India’s domestic market has strengthened, driven by new public works projects, absorbing excess supply and pushing local prices up. As a result, Indian exporters are less inclined to offer aggressive low prices, easing supply-side pressure in the region.
Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and BigMint.
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