INTELLIGENCE REPORT

HRC Steel Intelligence Report

August 18, 2026 · Intelligence Report · HRC Steel (CME, SHFE)
BUYER POSITION: DEFENSIVE

US HRC opens mid-August 2026 at $1,196/st — up 27.2% YTD at the top of its 52-week range, with the rally now fully plateaued. Nucor's fourth consecutive weekly hike decelerated to +$5 (CSP $1,160/st, week beginning Aug 10) and SMU's spot canvass held at $1,180/st, unchanged week over week. THE STRUCTURAL DRIVER: Section 232 at 50% keeps the US market tariff-walled, but the decisive change versus early August is the deferred futures curve repricing UP — Jan-27 now $1,144/st and Dec-27 $1,051, versus the prior $940 anchor. That removes the market's old "21% normalization" bet and prices only a ~4% decline to early 2027. The Q4 import wave is now data-confirmed: July import permits hit 2.29M nt, +10.1% month over month and the highest since June 2025, with Korean permits up 79.7% YoY. US capacity utilization slipped to 78.8% (week ending Aug 8), the first print below the 80% threshold in weeks. China remains the deflationary anchor — SHFE HRC at 3,279 CNY/mt near two-year lows — though CISA mill inventories fell 10.2% from Jul 20 to Jul 31 as production cuts finally bite. Buyers should cover 6-8 weeks and lock H1 2027 futures near $1,144, the cheapest forward coverage of the cycle.

CME US Midwest HRC
$1,196
/st · flat daily
SHFE HRC
3,279
CNY/mt · -0.3% daily
YTD Change
+27.2%
since Jan 2026
Nucor CSP
$1,160
+$5 · wk Aug 10
EU HRC N. Europe
~717
EUR/t ex-works · Aug 12
Iron Ore 62%
$95.0
/mt · -11.4% YTD
July Import Permits
2.29M nt
+10.1% MoM · 14-mo high
US Cap. Util.
78.8%
AISI · wk Aug 8
19 Facts · 8 Estimates
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Data status: CME US Midwest HRC at $1,196/st (Aug 17). SHFE HRC at 3,279 CNY/mt (Aug 18). Nucor CSP $1,160/st (+$5, wk Aug 10). EU HRC ~717 EUR/t (Fastmarkets Aug 12). Iron ore TIO=F at $95.0/mt (Aug 17). July import permits 2.29M nt (+10.1% MoM, highest since Jun 2025). US capacity utilization 78.8% (wk Aug 8). China HRC social inventories 3.638 Mt (+1.42% w/w, Jul 31); CISA mill inventories 16.28 Mt (-10.2% from Jul 20). Worldsteel June output 155.7 Mt (+1.7% YoY). Sources: CME Group, SHFE, AISI, SIMA, WSD, SMU, Fastmarkets, Mysteel, Double Steel, CISA, worldsteel, Yieh Corp, GMK Center, SMM, S&P Global, Morgan Stanley.

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