Details about Hot Rolled Coils

Steel is one of the most ubiquitous of commodities yet the hardest to set specifications and price for. There is not a single global price for steel, since there are many different physical and chemical properties relating to steel and more than 3,500 finished steel products. This is primarily because steel is not an element on the periodic table, as is gold or copper, but an alloy of iron and carbon. Nearly all of the world’s steel is a carbon-based alloy, comprising greater than 90 percent iron and less than 2 percent carbon, with the balance being made up of additives for strength and finish.
Hot Rolled Coils (HRC) are used as a hedging tool for producers and users of steel, and provide an index-based price discovery mechanism. In addition, they:
Reflect the growing use of index-based pricing, in tandem with the increase in steel price volatility.
Offer hedging opportunities throughout the steel supply chain, from steel mills to steel service centers, distributors, merchants and end-users.
Provide price assessments based on actual spot transactions in the market, with all the data providers directly involved in buying and selling the relevant steel product on the spot market.