For the Quarter Ending June 2026
HR Strip Price in APAC
- In India, the HR Strip Price Index rose by 0.63% quarter-over-quarter, reflecting mixed supply-demand balance.
- The average HR Strip price for the quarter was approximately USD 477.00/MT, reflecting subdued seasonal demand.
- HR Strip Spot Price remained firm amid mill list-holding and limited dealer restocking ahead of monsoon-related demand slowdown.
- The HR Strip Price Forecast shows modest volatility as geopolitical freight-premiums and domestic allocation cycles affect arbitrage opportunities.
- HR Strip Production Cost Trend edged higher due to elevated imported coking-coal and rising bunker and insurance premiums.
- HR Strip Demand Outlook is mixed as infrastructure allocations support orders while monsoon season curbs construction restocking.
- Rising inventories and steady imports pressured the HR Strip Price Index, keeping transactional levels range-bound overall.
- Major mill operating rates stayed high while service-centre stocks cushioned volatility amid cautious export inquiries.
Why did the price of HR Strip change in June 2026 in APAC?
- Abundant domestic mill output and steady import arrivals increased spot availability, directly exerting downward pressure on prices.
- Elevated landed coking-coal and bunker costs supported production expenses, partially offsetting downside and firming offers.
- Seasonal monsoon slowdown reduced construction buying while government infrastructure allocations maintained selective procurement interest during quarter.
HR Strip Price in North America
- HR Strip Spot Price softened gradually through April and May before stabilizing in June, as domestic mill order books shortened and buyers adopted a wait-and-see approach amid falling scrap benchmarks.
- HR Strip Production Cost Trend remained elevated due to higher natural gas costs for direct reduced iron (DRI) feed and sustained coking-coal import premiums, though lower iron ore prices partially offset the increase.
- HR Strip Price Forecast suggests range-bound trading in Q3 2026, with possible upside if automotive restocking accelerates and import safeguard measures are enforced more strictly.
- HR Strip Demand Outlook is cautious; demand from the energy tubular sector remained robust, while construction and agricultural equipment manufacturing showed softer off-take due to high interest rates impacting capital expenditure.
- Major U.S. integrated mills operated at 78–80% capacity, while mini-mills reduced shift schedules to align with weaker order entry, helping to prevent a steeper price collapse.
- Service center inventories increased by approximately 6% over the quarter, exerting downward pressure on the HR Strip Price Index as buyers sourced from secondary stock rather than mill-direct volumes.
Why did the price of HR Strip change in June 2026 in North America?
- Prices decreased in June 2026 primarily due to a sudden drop in shredded scrap prices (down ~9% month-over-month), which reduced the variable cost component for electric-arc furnace (EAF) producers and allowed them to offer more competitive spot tons.
- Additionally, softer-than-expected May auto production data (down 3.2% month-over-month) reduced just-in-time purchasing from tier-one stampers, lowering the HR Strip Spot Price as mills competed for fewer orders.
- Higher import offers from South Korea and Vietnam, delivered at prices ~USD 30/ST below domestic levels, forced U.S. mills to match downward to retain market share, further pressuring the HR Strip Price Index in June.
HR Strip Price in Europe
- HR Strip Spot Price showed consistent weakness throughout the quarter, driven by sluggish industrial activity and ample availability from both domestic and imported sources.
- HR Strip Production Cost Trend moved upward due to higher EU ETS carbon allowance prices and elevated coking-coal costs, but mills absorbed margin compression rather than passing through full increases amid weak demand.
- HR Strip Price Forecast projects continued softness into early Q3, with a potential rebound contingent on German infrastructure stimulus and a recovery in white-goods production.
- HR Strip Demand Outlook remains subdued; automotive OEMs reduced procurement volumes due to ongoing EV transition uncertainties, while construction sector demand stayed flat with no significant project starts.
- Major European producers, including ArcelorMittal and Thyssenkrupp, implemented temporary blast-furnace idle periods to manage oversupply, though this did not immediately lift the HR Strip Price Index.
- Port inventories at Antwerp and Rotterdam built up by 8% over the quarter, as imported coil from India and Turkey arrived at competitive prices, creating a ceiling on domestic price recovery.
Why did the price of HR Strip change in June 2026 in Europe?
- Prices decreased in June 2026 primarily due to a wave of competitively priced import arrivals from India and Turkey, which undercut domestic offers by approximately EUR 25–30/MT on a landed basis.
- Weak end-user demand from the German automotive sector, compounded by a slower-than-expected post-holiday production ramp-up, reduced mill order books and pushed the HR Strip Spot Price lower.
- Additionally, a 4% appreciation of the Euro against the U.S. Dollar made European exports less competitive while simultaneously making imports cheaper in euro terms, increasing competitive pressure on the domestic HR Strip Price Index during June.
For the Quarter Ending March 2026
HR Strip Prices in APAC
- In India, the HR Strip Price Index rose by 10.61% quarter-over-quarter, driven by infrastructure procurement.
- The average HR Strip price for the quarter was approximately USD 474.00/MT, reported by domestic mills.
- HR Strip Spot Price tightened mid-March as export diversions reduced secondary market coil availability notably.
- HR Strip Price Forecast anticipates volatility in April from freight pressure and steady fabrication demand.
- HR Strip Production Cost Trend showed limited pressure as domestic coal flows improved, tempering costs.
- HR Strip Demand Outlook remained constructive with infrastructure tenders and automotive restocking supporting mill offtake.
- Late March inventories pressured HR Strip Price Index, prompting mills to trim offers, clear stock.
- Export diversions and selective mill allocations tightened domestic availability, sustaining short-term rally in secondary market.
Why did the price of HR Strip change in March 2026 in APAC?
- Improved domestic coal flows increased mill output and availability, exerting downward pressure on March prices.
- Stronger infrastructure tenders and export diversions supported offtake, providing upside to March HR Strip pricing.
- Elevated freight and geopolitical risk increased landed costs, allowing suppliers to sustain firmer offers locally.
HR Strip Prices in North America
- In North America, the HR Strip Price Index softened during the quarter due to reduced manufacturing demand and inventory destocking.
- HR Strip Spot Price faced headwinds in March as buyers delayed new orders amid economic uncertainty.
- HR Strip Price Forecast suggests stability entering Q3 2026, supported by potential tariff adjustments.
- HR Strip Production Cost Trend rose modestly as scrap and energy costs increased across domestic mills.
- HR Strip Demand Outlook remained mixed, with automotive off-take weakening but construction holding steady.
- Late quarter adjustments saw HR Strip Price Index decline as mills competed for limited spot market interest.
- Selective mill idling in the Midwest reduced supply, partially offsetting the downward trend.
Why did the price of HR Strip change in March 2026 in North America?
- Increased scrap and energy costs raised production expenses, but mills could not pass through full increases due to weak demand.
- Automotive restocking failed to materialize as expected, reducing spot buying pressure and pulling prices lower in March.
HR Strip Prices in Europe
- In Europe, the HR Strip Price Index declined by approximately 4% quarter-over-quarter, pressured by subdued industrial activity.
- HR Strip Spot Price moved lower through March as import competition intensified from Asia and the Middle East.
- HR Strip Price Forecast points to continued softness until energy cost stability returns to the region.
- HR Strip Production Cost Trend decreased slightly on lower natural gas prices, easing mill margins pressure.
- HR Strip Demand Outlook remained weak, with manufacturing PMI contracting and construction starts slowing.
- Inventory overhang in northern Europe weighed on the HR Strip Price Index, forcing mills to adjust list prices downward.
- Temporary mill shutdowns during holidays did little to tighten supply, as buyer resistance remained firm.
Why did the price of HR Strip change in March 2026 in Europe?
- Lower natural gas prices reduced production costs, giving mills flexibility to cut offers to maintain order books.
- Intensifying import competition and weak manufacturing demand created a buyer’s market, driving March prices downward.
