Hot Rolled Coil Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Hot Rolled Steel Coil in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Hot Rolled Coil Price Trend for the Second Half of 2023

Asia

The H2 of 2023 began with the dull momentum of downstream industries, particularly the automotive and construction sectors, which resulted in the downfall of hot rolled coil prices throughout the third and fourth quarters. Another cause of the subdued market trend in the hot rolled coil market was the stagnancy in the growth of the industrial sector and rising inventory levels.

Hot Rolled Coil Price Chart

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The economic challenges and rising interest rates further intensified the growing concerns of the traders. During the fourth quarter, consumer sentiments and the other parameters of the market remained on the lower end but the rise in production costs supported the hot rolled coil prices.

Europe

The European countries in the third quarter witnessed a rise in the supply of raw materials required in industrial production of hot rolled coil along with a fall in consumer demand. This imbalance in the supply and demand sectors and the sudden uptick in production cost raised traders' concerns as the market winds moved south. As compared to the third quarter, the fourth quarter trend of hot rolled coil prices was much more stable. Although surplus availability of the product remained a hot topic among the traders, movements in the downstream industries presented positive sentiments.

North America

Throughout the third and fourth quarters of 2023, the hot rolled coil price trend experienced a regular downward trend, compounded by several market parameters. The foremost of these is the reduction in purchase offers and limited spending budget of the consumers amid growing concerns about the economic stability of the region. The cautionary approach of the automotive industries and labor strikes further intensified the struggling market dynamics.

Analyst Insight

According to Procurement Resource, the price trend of Hot Rolled Coil is expected to be on the lower end of the spectrum as the global fluctuations in the functioning of the downstream industries present a bleak condition of the market.

Hot Rolled Steel Coil Price Trend for the First Half of 2023

Asia

The Chinese manufacturing sector was supported by the revival of infrastructure and strong production of hot rolled steel coils in the initial months of the first quarter. Some of the manufacturing units went under maintenance shut down in the middle of this quarter, which negatively affected the production rates, and due to high demand, the prices of hot rolled steel coils inclined.

The second quarter, however, struggled with the decline in the cost of feedstocks, festival season, and extreme rainfall that hampered the demand and consumption rates of consumers. These factors, along with the hike in inflation, resulted in the negative movement of hot rolled steel coils prices.

Europe

The first quarter witnessed a significant surge in the price trend of hot-rolled steel coils in European countries. The surge was accelerated by the limited supply and high demand from the construction and automobile industries. The traders also enjoyed the benefit of a lack of imports that decreased the competition in the market.

The initial months of the second quarter also worked on the same path. The second half of the second quarter, however, struggled with the declining economic trajectory and falling demand from the construction and automobile sectors, leading to the decline in the prices of hot rolled steel coils.

North America

The first quarter of hot rolled steel coils prices imitated the trend shown in the European and Asia-Pacific countries. In the US, the trend inclined with the support of rising prices of feedstock materials and an increase in the number of inquiries from the downstream sectors. The second half of the second quarter witnessed a change in winds as the plunging economic conditions increased instability in the prices of hot rolled steel coils that further worsened the debt crisis and inflation rate hike. The consumers, thus, were reluctant to place orders in bulk, resulting in a decline in the price trend of hot rolled steel coils.

Analyst Insight

According to Procurement Resource, the price trend of Hot Rolled Steel Coils is expected to follow a southwards trajectory due to the decline in consumer demand and weak growth of the economy.

Procurement Resource provides latest prices of Hot Rolled Coil. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.