Steel Facts: Did You Know?

Understanding the steel market has its fair share of challenges. Some common questions you might be asking yourself include:

What is the price of steel? Why are leads times so extended? What makes up a stainless steel surcharge?

We are here to help. Bookmark this page for all you need to know about the metal market. Check back regularly for updates as we will continually expand the knowledge on this page.

What is Hot Roll Coil Steel?

HRC (hot roll coil) is the principal finished steel form in the global steel industry. Pricing of HRC requires accurate and timely spot pricing and analysis. Many factors, ranging from the cost of the raw material to global trade agreements, ultimately impact pricing of the carbon steel product you purchase.

Raw Material: Steel begins in the raw state of iron ore, scrap, coking coal, and natural gas. The price of these resources is influenced by the producing countries and traded on exchanges.

Supply/Demand Dynamics: Macro-economic factors can play a large role. Take the U.S. administration imposing a 25% tariff on steel in early 2018 via Section 232, as an example.

Immediately, the U.S. experienced a rise in the pricing of HRC. Throughout much of 2018, on a non-tariff adjusted basis, U.S. steel prices traded at a wider premium relative to European and Chinese steel prices. When adding in applicable tariffs, however, the spreads appeared to have been more in line with historical norms.

Mill Treatments: HRC endures various treatments at the steel mill depending on the end-use of the product. Each treatment adds a different level of cost.