What is Hot Rolled Steel Coil and Its Price Trends in China in 2025

Understanding Hot Rolled Steel Coil (HRC)

What is hot-rolled steel coil? It is made by heating the raw steel to above 927°C, then pressing it into thin sheets, and then rolling these sheets into a single coil. The reason for rolling them into a coil shape is to facilitate subsequent processing and transportation.HRC possesses less precise dimensional accuracy, however, provides production speed and cost benefits when compared to cold-rolled steel. Its surface still displays a slightly rough texture, as it is quickly cooled after rolling, which is acceptable for structural applications where aesthetics will take a back seat to performance.

Key Applications. HRC is frequently used in domains due to its durability and versatility:

1. Automotive Industry: HRC's high tensile strength and impact resistance are advantageous to vehicles and frames as well as many chassis and structural parts.

2. Construction: For instance, bridges, buildings and infrastructure projects depend on HRC to build rigid structures bearing loads.

3. Energy Sector: Pipes and tubes for oil/gas pipelines and HVAC systems use HRC’s pressure and corrosion resistance.

4. Manufacturing: Machinery, appliances, and industrial equipment work with HRC – it’s a cost-effective and robust product form factor.

Trends in the prices of Hot Rolled Steel Coil in China (2025). China sees HRC price volatility due to domestic demand, supply disruptions and global market trends across all markets with HRC fluctuating prices throughout 2025.

Q1 2025: Oversupply Pressures Prices. In the first quarter China’s HRC prices averaged US$558/MT compared with the global benchmark because of:

· Domestic Oversupply: Weak demand in the property sector and massive inventory pushed mills to negotiate depressed prices.

· Export Competition: Intense international market pricing to counter soft local sales.

· Regional Differences: Northern China (e.g., Tangshan) experienced the highest increase in prices (1.0% month-on-month), mainly because of higher capacity utilization (78 percent), while Southern China (Guangdong, Shanghai), saw oversupply and rebar prices are down 2.1 percent.

Mid-2025: Cuts in Supply and Cost Pressures

By September 2025, prices bounced back up to ¥3,444.9/ton (US$487/MT), supported by:

· Production Cuts: Steel mills cut production (with PMI production index at 48.0%, well below the 50% threshold), tightening supply.

· Increasing Input Costs: Rising iron ore and coal costs forced mills to increase ex-factory prices ¥200/ton–300/ton.

· Niche Demand: Premium products, e.g., zinc-aluminum-magnesium (ZAM) coated coils, continued to fetch higher prices (¥4,980 - 5,200 per ton) for solar and agricultural machines.

Q4 2025: Mixed Sentiment:

HRC prices stayed flat around US$907/MT (as of December 2025, based on CFD) in 2025, which can be attributed to:

· Short-Term Stability: A 0.44% month-on-month drop, but 26.32% year-on-year increase indicating long-term recovery.

· Global Influence: Chinese prices were still competitive with US (1,212/MT) and Germany (806/MT) based on cost advantages and export-related strategies.

Factors Shaping Chinese HRC Prices.

1. Domestic Demand: Infrastructure expenditures and industrial output directly affect price.

2. Supply Dynamics: The impact of a producer’s reduced or increased output (in this case a company like Baosteel or Ansteel) contributes to the volatility.

3. Export Policies: Tariffs and trade agreements with important markets (e.g., Southeast Asia, Europe) dictate pricing strategies.

4. Raw Material Costs: Changes in iron ore, coal and energy prices affect costs.

Conclusion. Hot rolled steel coil is still a cornerstone of China's industrial and construction industries and prices in 2025 are consistent with a healthy mix of domestic capacity oversupply problems and global demand revival. In Q1, we observed downward pressure, but mid-year supply cuts and cost inflation delivered a rebound, eventually stabilizing by Q4. For stakeholders, tracking regional production patterns, export policies and raw material costs is the key to managing China HRC market.