Against the backdrop of the continued evolution of the global economic landscape and the steady development of the domestic economy, as domestic and foreign manufacturing demand gradually recovers from the previous possible downturn like everything gradually awakening in spring, the hot-rolled coil (HRC) market is like a lake surface swept by the spring breeze, continuously releasing positive and exciting signals.

As one of the basic and key materials in the steel industry chain, the role played by hot-rolled coil is crucial and irreplaceable. In the field of automobile manufacturing, it is an important cornerstone for building key components such as automobile bodies and chassis, providing solid guarantees for the safe and stable driving of automobiles; in terms of building structures, whether it is a skyscraper towering into the sky or a magnificent bridge across a river, hot-rolled coils support the skeleton of the entire building with their excellent strength and toughness; the mechanical processing industry is also inseparable from it. Various precision mechanical equipment and complex production lines are made of hot-rolled coils as raw materials; in bridge construction, it is like steel and iron bones, carrying the weight of vehicles and pedestrians and the baptism of wind and rain; in the shipbuilding industry, hot-rolled coils are key materials for building a strong hull, helping ships to ride the wind and waves in the vast ocean; in the field of petrochemicals, it also relies on its own characteristics to contribute to the manufacture of various chemical equipment.

Market conditions continue to heat up

Since the time entered 2025, the price of domestic hot-rolled coils seems to have embarked on a journey of oscillating upward. According to professional and authoritative market monitoring data of the steel industry, in the first quarter, the traditional peak season for production and sales, the average ex-factory price of hot-rolled coils increased by about 5%-8% compared with the same period last year. There are many strong and powerful driving factors behind this price increase.

First, the recovery of downstream demand is like a spring breeze, warming up the entire hot-rolled coil market. As production activities in various industries gradually resume and become more active, the demand for hot-rolled coils is like a tide. Especially in the field of engineering machinery, the production of huge excavators, loaders and other equipment requires a large amount of hot-rolled coils to build their sturdy fuselages and strong booms; heavy equipment manufacturers have also increased their purchases of hot-rolled coils in order to meet the market demand for large-scale machinery and equipment; and in terms of new energy vehicle chassis structure, with the vigorous development of the new energy vehicle industry, the demand for high-performance and high-precision hot-rolled coils is growing. Enterprises have increased their purchases, and their preference for high-specification HRC products has become more and more obvious, which has further increased the demand gap for high-quality hot-rolled coils in the market.

Secondly, the acceleration of inventory destocking also provides impetus for price increases. In the past period of time, steel mills and distributors have accelerated the digestion of inventory through reasonable market strategies and active sales methods. The reduction in inventory has caused a relatively tight supply of hot-rolled coils in the market to a certain extent, thus driving up prices.

Finally, the stabilization of the prices of raw materials such as iron ore is like building a stable foundation for the price of hot-rolled coils. As an important raw material for the production of hot-rolled coils, the stability of iron ore prices enables the production costs of steel mills to be effectively controlled, thereby providing strong support for the rise in the price of hot-rolled coils.

The export market continues to be active

On the broad stage of the international market, affected by the combined influence of multiple factors such as the reconstruction of the global supply chain and the reduction of steel production in some countries, the export performance of China's hot-rolled coils is particularly outstanding, shining like a bright star in the international market.

In the first four months of 2025, China's hot-rolled coil exports increased by more than 10% year-on-year. Behind this impressive achievement is the strong competitiveness of China's hot-rolled coils in the international market. The main exporting countries include Vietnam, Indonesia, the United Arab Emirates, Turkey and Brazil. These countries are in a rapid stage of economic development and have huge demands for infrastructure construction, industrial manufacturing and other aspects, providing a broad market space for Chinese hot-rolled coils.

In these regions, the demand for general-purpose hot-rolled coils continues to grow because they are widely used in various conventional construction projects and machinery manufacturing. At the same time, the demand for HRC for API pipeline steel is also showing a rapid growth trend, mainly due to the vigorous development of energy fields such as oil and gas in these countries, and the increasing demand for high-quality pipeline steel. In addition, high-strength structural steel coils are also very popular. They play an important role in some projects with high structural strength requirements, such as the construction of large bridges and high-rise buildings. These growing demands have become the key support for domestic steel mills to expand the international market, prompting domestic steel mills to continue to deepen their efforts in the international market and increase their market share and brand influence.

Product upgrades promote technological progress

Hot-rolled coils are striding towards higher performance, like a traveler who constantly pursues excellence and forges ahead on the road of technology. At present, customers' performance requirements for steel have reached a new height, and higher standards have been put forward for steel's strength, ductility, welding performance and dimensional accuracy.

In the automobile manufacturing industry, in order to achieve the goal of lightweighting while ensuring the safety and reliability of the car, hot-rolled coils need to have higher strength and better ductility, so that they can withstand various complex road conditions and collisions while reducing the weight of the car body. In the field of construction, as high-rise buildings continue to stretch toward the sky, the strength requirements for building materials are getting higher and higher, and hot-rolled coils need to have higher load-bearing capacity to ensure the stability and safety of buildings. In terms of equipment customization, different customers have very different requirements for equipment specifications and performance, which requires hot-rolled coils to be able to achieve multi-specification customized production to meet various personalized needs.

In order to meet these increasingly stringent requirements, steel mills have increased their investment in research and development, just like farmers working hard in the fields of technology, constantly exploring and innovating. They actively promote advanced hot rolling technologies, such as controlled rolling and controlled cooling (TMCP) technology, which can effectively improve the organizational structure of steel and improve the comprehensive performance of steel by precisely controlling the rolling and cooling process; the research and development and application of low-alloy high-strength steel enable steel to maintain high strength while reducing the amount of alloy, reducing production costs; the continuous improvement of multi-specification customized production capabilities allows steel mills to flexibly adjust production processes according to the specific requirements of customers and produce hot-rolled coils that meet various special specifications.

For example, medium- and high-strength hot-rolled coils such as Q345B and Q460E have been widely used in key parts such as mechanical main structures, tower crane booms, and hull frames due to their excellent performance. Using high-performance hot-rolled coils in these key parts can not only improve the bearing capacity and ensure the safe and stable operation of the equipment, but also effectively reduce the weight of the structure, achieve lightweight design, and improve energy efficiency.

Green production helps low-carbon transformation

Under the strong promotion of the "dual carbon" policy, domestic steel companies are like giant ships with green sails, actively implementing green manufacturing transformation and sailing in the ocean of sustainable development.

On the one hand, enterprises can reduce carbon emissions in the production process by optimizing energy consumption structure, adopting more efficient and clean energy, and reducing dependence on traditional fossil energy. For example, increase the proportion of renewable energy such as solar energy and wind energy, or adopt advanced energy-saving technologies to improve energy utilization efficiency, so that every unit of energy can play the greatest role.

On the other hand, the use of scrap steel electric furnace technology has become an important measure for many steel companies. As a renewable resource, the recycling of scrap steel can not only reduce the mining of natural resources such as iron ore, but also reduce carbon emissions in the production process. Through the scrap steel electric furnace process, the discarded steel is returned to the furnace for smelting, giving it new life and becoming a high-quality hot-rolled coil product.

At the same time, strengthening the energy efficiency management of hot rolling production lines is also a key link. Enterprises have improved the energy efficiency of hot rolling production lines and reduced energy waste by introducing advanced automated control systems, optimizing production processes, and strengthening equipment maintenance. For example, by precisely controlling the temperature of the heating furnace, excessive energy consumption can be avoided; energy recycling during the rolling process can further improve energy efficiency.

With these efforts, the carbon footprint of hot-rolled coil products is gradually decreasing. Some advanced steel companies have passed the ISO14067 carbon footprint certification, which is undoubtedly a high recognition of their efforts in low-carbon and environmental protection.

The green transformation of these steel companies not only meets the country's "dual carbon" goals, but also sets a good example for the sustainable development of the global steel industry.