US HRC prices rose by 57% Q-o-Q driven by a combination of tighter supply, rising scrap prices, and limited imports. Steel supply is expected to recover as the US mill capacity utilization rate has rebounded to 75% from a bottom of 72% in the last quarter. With new capacity ramping up steel prices are expected to stabilize.

EU HRC prices went up by 19% Q-o-Q due to sluggish steel output from the previous quarter. The outlook for end-user demand remains unfavorable; with EU mills offering high prices and extended delivery lead times, imports may start to become more attractive. These factors may limit the extent of the price increases that local producers are able to implement.

CN HRC remained flat, with a slight increase of 1%, caused by signs of recovery from automotive and property sectors in March. With production output decreasing during the past 3 months, downstream demand recovering as the economy reopened after long COVID restrictions, and rising iron ore prices, CN HRC prices are on an upward trajectory.