A method of coiling steel rod arriving continuously comprises the steps of rotating about an upright axis a coiling basket defining a space centered on the axis and defined by an annular inner wall, an annular outer wall, and a floor between the walls, and feeding the rod into the space to form a coil resting on the floor and formed by a multiplicity of turns. The coil is, once formed, raised out of the space and simultaneously axially compacted and is also stabilized. More particularly the coil is stabilized by spraying an outer surface of the coil with a coolant while raising the coil out of the space. Normally the coil is rotated about the axis as the coil outer surface is being sprayed.