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| Hot Rolled Coil Market |
Regional Snapshot: Hot‑Rolled Coil Market Overview
The hot‑rolled coil market endured contrasting trends across key regions in June 2025. In Europe, weak demand and high inventories drove HRC prices down. Western Europe saw a 10.2 % drop to €575/t, while Southern Europe CIF prices fell to €475/t. Meanwhile, the US market strengthened under Section 232 tariffs, and China experienced moderate price declines.
Why the Hot‑Rolled Coil Market Diverged: Key Drivers and Impacts
European mills slashed prices to compete with imports from Turkey, North Africa, and Asia at €460–520/t CFR. However, buyers show early signs of renewed interest. Meanwhile, the US saw a 1.1 % price increase to $986.6/t ex‑works, driven by renewed 50 % steel tariffs. Though demand stayed tepid, rising domestic pricing signaled producer strength. In contrast, China saw a 1.6 % drop to $475.5/t FOB due to weak PMI data and aggressive pricing from exporters offering extended payment terms.
Outlook: CBAM, Tariffs, and Seasonality
Market participants link European stabilization hopes to the 2026 Carbon Border Adjustment Mechanism (CBAM). The US market may remain firm post–July 4, but demand recovery remains critical. Conversely, China’s hot‑rolled coil market faces a traditional seasonal lull, with limited signs of recovery in July.
ScrapInsight Commentary
The hot‑rolled coil market’s regional divergence highlights how policy, tariffs, and demand shifts shape pricing dynamics. As CBAM draws nearer, Europe could favor local mills. In the US, tariffs bolster producer leverage. China’s weak PMI and seasonal slowdown suggest minimal near‑term upside. Monitoring these factors remains vital for global scrap and steel stakeholders.
