In late April 2025, U.S. hot-rolled coil (HRC) prices experienced a decline, dropping from $975 per metric ton to $952 per metric ton, according to Kallanish. This decrease follows a period of heightened prices due to the introduction of a 25% tariff on imported steel products to the United States. Despite the price drop, buyer sentiment remains stable, preventing a rapid decline in prices.
Factors Influencing the Price Adjustment
The initial surge in HRC prices was driven by uncertainty following the tariff implementation. However, as market participants adjusted to the new trade environment, prices began to stabilize. Requests from buyers have remained consistent, contributing to the gradual price decrease.
Automotive Industry’s Role in Price Dynamics
The U.S. automotive industry, a significant consumer of hot-rolled coils, reported a 4.6% year-over-year increase in sales for April 2025, totaling 1.395 million units. However, this figure represents a 12% decrease compared to March 2025, despite the same number of trading days. Analysts attribute the earlier surge in car sales to the anticipation of the 25% import duty, with current demand stabilizing as the market adjusts.
Global Price Trends and Market Outlook
Internationally, hot-rolled coil prices have shown varied trends. In India, prices rose by $8 in the second half of April, reaching $600 per ton FOB. Conversely, in Southern Europe, prices decreased by €5 to €540 per ton CIF. Chinese prices remained stable at $470 per ton FOB, with futures contracts for October deliveries priced at $439 per ton, indicating cautious market expectations.
The global steel market continues to navigate the complexities introduced by new trade policies and shifting demand patterns. While U.S. prices have adjusted downward, international markets exhibit a mix of stability and cautious optimism. Industry stakeholders are closely monitoring these developments to anticipate future price movements and market dynamics.
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