- Rising coking coal costs, improved demand push offers higher
- Hoa Phat’s Oct’26 HRC allocation exhausted amid strong demand
Asian hot-rolled coil (HRC) prices have moved higher, with market levels rising to the mid-$500s/t amid concerns over supply following a fire at Vietnam’s Formosa Ha Tinh Steel (FHS). Meanwhile, higher coking coal costs, driven by reduced mining activity in China, have prompted some sellers to raise offers towards the high-$500s/t range.
FHS blast furnace fire limits production
A fire broke out at one of FHS’s four blast furnaces on 4 September. The company is currently operating with alternative equipment, while negotiations resumed on 8 September. FHS has reportedly indicated November HRC prices at around $537/t for large-volume orders. The production disruption is expected to affect near-term availability, lending support to market prices.
Hoa Phat sells out Oct’26 volumes
Meanwhile, major Vietnamese steelmaker Hoa Phat reportedly offered large-volume HRC at around $530/t and has already sold out its October shipment allocation. The offers attracted strong buying interest, particularly compared with export offers currently available from India and Indonesia.
Higher costs support market
Asian HRC prices are expected to remain firm in the near term, supported by higher coking coal costs and a seasonal improvement in demand as the summer and rainy seasons ease. However, current HRC prices in the mid-$500s/t remain below levels that fully reflect the recent increase in raw material costs, with some export offers emerging in the high-$500s/t range.
Note: This article is published as part of a content exchange agreement between Japan Metal Daily and BigMint.
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