Steel mills in China, Taiwan, and Japan have reduced production capacity, thereby pushing up the price of hot-rolled coil (HRC). In addition, Indian mills have withdrawn from major markets for more than six months and focused on more profitable domestic sales.

Some market participants pointed out that the appreciation of the RMB exchange rate against the US dollar and OPEC's production reduction agreement have caused an increase in oil prices and pushed HRC prices up further.

As for the delivery time, at present, only Chinese mills can supply the January-February delivery, and the delivery of steel mills in Japan and Taiwan exceeds February.

Local distributors estimated that the Saudi Arabian market will import 400,000 to 500,000 tons of HRC in 2024, which will be applied for oil, natural gas, and water transportation projects. However, HRC price continues to rise, and some steel mills have adopted a wait-and-see attitude, reducing capacity or withdrawing from the market.