US HRC rebounded by ~46% Q-o-Q as Detroit 3 labor disputes were resolved, and mill order books stretched into 2024. Steel capacity utilization hovered near LTM lows while service centers replenished inventories as the strikes ended. In addition to tight supply, the potential for interest rate cuts drove positive sentiment in the commodity market.

EU HRC prices increased by ~16% Q-o-Q as tight supply outpaced weak demand. Steel mills raised offers to cope with squeezing margins despite subdued demand under tight monetary conditions. Import competition is likely to ease as the EU recently launched the first phase of a carbon border tax.

CN HRC prices stabilized at an 8% Q-o-Q increase due to raw material input costs. Despite low demand and a struggling property sector, steel mills have not cut production sufficiently, resulting in a surplus. The situation may persist until stricter production limits are set and demand rises.