WHAT IS IT?
Hot Rolled Coil (HRC) is a flat steel product produced by rolling a steel slab at temperatures above 1100°C (above the steel's recrystallisation temperature). It is the primary intermediate flat steel product and the starting material for cold rolling, galvanising, and many end applications.
PRODUCTION PROCESS
Iron ore + Coking coal → Blast Furnace → Pig iron → Basic Oxygen Furnace → Liquid steel → Continuous casting → Slab → Hot Strip Mill → Hot Rolled Coil
OR: Scrap → Electric Arc Furnace (EAF) → Liquid steel → Slab → HRC (mini-mill route)
KEY SPECIFICATIONS
Thickness: 1.5–25mm (typical commercial: 2–12mm)
Width: 600–2,100mm
Coil weight: 10–30 tonnes
Yield Strength: typically 250–400 MPa for standard grades
Surface condition: Mill scale (black surface — not pickled)
KEY USES
Input for Cold Rolled Coil (CRC) production
Shipbuilding (structural plates from HRC)
Heavy automotive stampings
Energy sector (pipes, line pipe substrate)
Construction (profiles, sections from HRC)
Agricultural equipment
Railway wagons
TRADE CORRIDORS
Major exporters: China (world's largest steel exporter), South Korea, Japan, India, Russia, Turkey
Major buyers: Southeast Asia, Middle East, USA, Europe, Africa
Tetra relevance: China and South Korea → SEA/East Africa corridor. Steel tariff structures critical.
PRICING BASIS
Benchmarks: CME HRC Futures (US market), Platts TSI HRC CIF NW Europe, Platts TSI HRC CFR SEA (Southeast Asia).
Key cost drivers: Iron ore price, coking coal price, energy cost, freight.
CHINA EXPORT DYNAMICS
China's steel exports are heavily watched globally. When Chinese domestic demand weakens, mills export more, depressing global prices. Export taxes (applied 2021–2024) dramatically cut volumes. Removal of export taxes triggers a surge in Chinese exports.