Global hot-rolled coild (HRC) market showed varied trends. Hot-rolled coil (HRC) prices in USA have increased following the price hike by manufacturers as their ability to determine prices have strengthened with the restructuring of major steel companies. The country’s largest electric arc furnace (EAF) steel manufacturer, Nucor Corporation has announced hike in prices by $50/t in early-August while Cleveland Cliffs raised prices by $75/t a week ago.
According to media sources, HRC prices in USA rose by $60/t to $975/t against the price levels seen in late-July. With the hike in interest rates by Federal Reserve, the housing market has slowed down but market participants are optimistic about the future with increase in infrastructure spending by the government.
In Europe, ArcelorMittal has recently announced a hike in HRC prices by $50/t to $800/t for October sales with an expectation that demand will improve in the upcoming season.
However, prices have remained under pressure in countries like Asia due to subdued demand. For instance, Vietnamese mill Hoa Phat has lowered HRC prices to $595/t levels. Export offers from India and China have fallen amid sluggish demand in the overseas market.
In addition, Bangladesh and Pakistan are facing challenges such as tough conditions for issuing letter of credit (LC) and appreciation of dollar causing shortage of foreign currency. This has led towards the weakening of exports from these countries.
Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.
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