Steel is everywhere around us. From the cars we drive to the buildings we live in and even the appliances we use at home—steel plays a key role in modern life. One of the most widely used types of steel is Hot Rolled Coil (HRC). It's a basic steel product that’s used in everything from bridges and pipelines to machines and factory equipment.

So when HRC prices change, it affects not just big industries, but also the prices of everyday things we rely on. In this article, we’ll take a look at how HRC prices moved during the second quarter of 2025 and what’s causing those changes. We’ll break it down by region and explain things in simple terms.

What Is Hot Rolled Coil?

Before diving into the price trends, it helps to understand what Hot Rolled Coil actually is.

HRC is steel that’s rolled at high temperatures over 1,700°F making it easier to shape. It’s used in construction, machinery, shipbuilding, pipelines, and many more industries. It's less refined than cold rolled coil but cheaper and produced in larger volumes.

Now that we know what HRC is, let’s explore how its price has changed around the world recently.

China: Prices Go Down Due to Oversupply and Trade Tensions

Let’s start with China, the world’s biggest steel producer. According to PriceWatch, the price of hot rolled coil in China dropped from $506 per metric tonne in Q1 to $492.7 in Q2 2025. That’s a 2.63% decrease—not huge, but definitely noticeable.

So, what’s behind this drop?

There are a few reasons, but the biggest one is too much supply and not enough buyers.

In the first quarter, Chinese steel mills ramped up production, which led to a glut of HRC in the domestic market. When supply is high and demand is low, prices naturally go down. But it wasn’t just the local market that was affected China also struggled to export the extra steel.

Why? Because of growing trade tensions, especially between the US and China. New tariffs and restrictions made it harder for Chinese mills to sell steel to countries like the United States and those in the European Union. Some regions also reduced their import quotas, making it even tougher.

As a result, Chinese producers were forced to look for other export markets, but those often offer lower profit margins. This put more pressure on prices, and many people in the market now think that unless production slows down, prices could fall even more in the coming months.

United States: Prices Rise Sharply as Supply Tightens

Meanwhile, in the United States, things looked very different. In Q2 2025, HRC prices in the US increased by 6.75%, making it the strongest price growth among the regions PriceWatch reported on.

So, what caused this sharp rise?

First, supply was tight. US steelmakers were producing less than usual, and import competition remained low due to existing tariffs and trade barriers. With less steel available in the market, buyers were willing to pay more to make sure they had enough material for their needs.

Second, there was strong demand, especially from industries like manufacturing and infrastructure. The government’s ongoing infrastructure projects helped boost demand for steel, and that extra buying power gave producers the confidence to raise prices.

In fact, US mills announced multiple price hikes, and buyers accepted them. Why? Because many were worried about future shortages and rising raw material costs, so they decided to stock up now rather than risk paying more later.

With the US economy showing signs of steady growth, especially in sectors that use a lot of steel, the mood in the market was optimistic. This created what some call a bullish sentiment, where prices are expected to keep rising—or at least stay high for the short term.

For latest updates, price queries, demand forecasts, and supplier information related to Hot Rolled Coil prices, submit your request here: https://www.price-watch.ai/contact/

United Kingdom: Moderate Increase with Underlying Challenges

The story in the UK was a bit more balanced. According to PriceWatch, HRC prices in the UK rose by 3.57% in Q2 2025. Not as steep as in the US, but still a clear upward movement.

So, what’s going on in the UK?

Much like in the US, there was steady demand from key industries like automotive and manufacturing. These sectors rely heavily on hot rolled coil, and even though the overall economy remained a bit cautious, these industries continued to buy at a steady pace.

At the same time, input costs (like raw materials and energy) increased, which pushed up the cost of production. Mills were careful with how much they produced, which helped keep supply limited. That cautious supply management helped support higher prices.

Another factor was the difficulties in getting imported steel quickly. Some buyers had trouble securing urgent HRC shipments due to force majeure situations in the region. Basically, unexpected events disrupted supply chains, making it harder to get steel on short notice.

Adding to that pressure, there were new import taxes and regulatory changes in Europe. Some buyers rushed to buy steel before these changes fully took effect, hoping to avoid future cost increases. But even with all this activity, buyers stayed cautious nobody wanted to overcommit in a market where economic uncertainty still loomed large.

What Does This All Mean?

Looking at the big picture, here’s what we’re seeing:

• China is facing falling prices due to overproduction, weaker export markets, and trade barriers.

• The US is experiencing rising prices thanks to tight supply, strong demand, and limited imports.

• The UK also saw prices increase, but in a more measured way, with steady demand and some supply challenges.

What all of this tells us is that steel prices especially hot rolled coil are very sensitive to both global and local events. Things like trade disputes, tariffs, government policies, and even unexpected disruptions can quickly change the balance between supply and demand.

Final Thoughts

For businesses that rely on hot rolled coil—whether it's construction companies, car makers, or heavy equipment manufacturers keeping an eye on price trends is essential. Planning becomes difficult when prices swing up and down, and buying decisions must now consider not just today’s costs, but also what might happen in the next few months.

As we move further into 2025, it will be important to watch for signs of:

• Production cuts in China (which could support prices)

• New trade policies (especially between major economies)

• Shifts in demand, especially in industries tied to infrastructure and manufacturing

Whether you're buying or selling steel, staying informed is key—and as this past quarter has shown, the HRC market is anything but boring.