[SMM Steel] Indonesian HRC Flat at $515/mt FOB as Weak Demand Leaves Mills with Little Pricing Power

PT Garuda Yamato Steel (GYS) is strengthening its supply of profile and structural steel for Indonesia's construction and infrastructure sectors through its integrated production facility in Cikarang, Bekasi Regency, West Java. President Director Tony Taniwan said the company continues to develop structural steel products, including earthquake-resistant steel, sold as H-Beam and Wide Flange under the name "GYS Tahan Gempa Plus" and made from seismic-grade SN490B steel. He stressed that a building's earthquake resistance depends not only on material quality but also on structural design, connection strength, welding, fabrication, and construction supervision. GYS, formed in 2024 as a collaboration between Yamato Kogyo, Siam Yamato Steel, PT Hanwa Indonesia, and PT Gunung Raja Paksi Tbk, has a steel production capacity of 1.2 million tonnes per year and rolling capacity of about 900,000 tonnes per year. Its product range includes H-Beam, IWF, U Channel, and Equal Angle. It also runs a Steel Service Center offering CNC sawing, CNC drilling, cutting, straightening, and cut-to-length services beyond the standard 6, 9, and 12 meter sizes. Production uses electric arc furnace (EAF) melting to supply steel for both domestic and export markets.

Austrian steelmaker voestalpine has commissioned a new power plant unit at its Linz plant as part of its greentec steel decarbonization program, preparing operations for the transition to electric arc furnace (EAF)-based steel production in 2027. The unit was completed and handed over in summer 2026. It will generate electricity from steam produced during the cooling processes of the new EAF, which will help offset the reduced blast furnace gas available once the new EAF replaces a blast furnace. According to voestalpine, the unit is now ready to support the steelworks' transition to hybrid production using both EAFs and blast furnaces.

[Europe] European hot-rolled coil (HRC) steel prices continued their upward trend today. With buyers facing highly constrained procurement choices and elevated raw material input costs providing baseline support, domestic mills maintained strong bargaining leverage and successfully pushed offer levels higher. The majority of European producers have either filled or are close to completing their fourth-quarter order books, enabling them to selectively accept business at higher price points. Producers are holding back official first-quarter allocations while awaiting an upcoming key industry event next week to better gauge market reaction. On the pricing front, the Northwest European HRC ex-works price edged up to 743 EUR/mt EXW (~831 USD/mt), while the Italian domestic price matched the gains, rising to 739 EUR/mt EXW (~826 USD/mt). Broadly speaking, underlying fundamentals remain largely unchanged with weak downstream end-user demand, leaving supply contraction and cost pressures as the primary drivers of current price momentum. On imports, market participants are actively tracking the precise duty calculations and quota drawdowns for October import arrivals, particularly regarding Turkish and Indian shipments.