Placing a hot-rolled coil order might seem straightforward, but every purchase carries risk—cost overruns, lead-time delays, quality issues—that can disrupt your service center’s operations and margin. For Senior Buyers, asking the right questions upfront is the difference between smooth transactions and costly headaches.

Here are five critical questions to ask before you finalize your next hot-rolled coil (HRC) purchase.

1. What is the current and forecasted mill lead time?

Lead times for HRC fluctuate based on mill capacity, slab availability, and market demand. Knowing the current lead time—often anywhere from 3 to 8 weeks—is crucial. But just as important is the forecasted trend.

Ask your mill contacts:

Are lead times stable, increasing, or decreasing?

Are there planned maintenance outages or supply chain interruptions on the horizon?

How tight is the slab supply, and is it likely to impact coil production?

This insight lets you decide whether to buy now, accelerate orders, or wait.

2. What’s the mill’s allocation status for my grade and volume?

If the mill is in allocation mode, your order might be partially filled or delayed. Allocations occur when demand outpaces capacity.

Before placing an order:

Confirm your allocation status for the specific steel grade.

Ask if there are minimum volume requirements to maintain allocation priority.

Understand how allocations might affect shipment timing and quantity.

Being proactive about allocation helps you avoid surprises and plan buffer inventory.

3. Are there any recent or upcoming pricing changes?

Steel prices can shift weekly due to scrap costs, tariffs, and demand. A Senior Buyer must:

Confirm whether the quoted price is firm and for how long.

Ask about any expected price adjustments or surcharge changes.

Understand freight cost implications and fuel surcharge trends.

Locking in pricing at the right time prevents margin erosion. Conversely, waiting too long risks higher costs.

4. What are the coil specifications and certifications being offered?

Hot-rolled coil can vary widely in specs, even within the same grade. Ensure:

Gauge and width tolerances match your customer needs.

Surface finish (Oiled, Pickled, or Bare) is as required.

Mill test reports (MTRs) and certifications will be delivered promptly.

Any additional processing—such as slitting or inspection—can be handled efficiently.

Ordering coils that don’t meet spec leads to scrap, rework, or customer dissatisfaction.

5. How flexible is the mill on order modifications or cancellations?

Market conditions shift fast. Your customer forecast may change after you place an order.

Clarify:

What are the mill’s policies on order changes—volume adjustments, delivery schedule changes, cancellations?

Are there penalties or fees associated with modifications?

What lead time is required to make changes?

Knowing this helps manage risk and keeps procurement agile.

Answering these five questions before your next hot-rolled coil order reduces risk, strengthens supplier collaboration, and protects your margins. When you approach purchasing with diligence and foresight, you turn every order into a strategic move, not just a transactional necessity.