Posted on 11 Feb 2025
Production of hot-rolled coils (HRC) among the 37 Chinese flat steel producers Mysteel regularly monitors totalled 3.24 million tonnes over January 30-February 5, higher by just 7,000 tonnes or 0.22% on week, the results of Mysteel's production survey show.
The hot-rolling capacity utilization rate among the sampled mills nudged higher by 0.18 percentage point to average 82.81% during the same period, the results indicated.
The tiny on-week increase in output was mainly at mills in central and northern China, survey respondents noted, emphasizing that the rise resulted merely from some steel producers lifting their run rates and not from the commissioning of new strip facilities.
Overall, the flat product makers maintained steady HRC output during the week in anticipation of a gradual recovery in demand as the month progresses. During the survey period however, most consumers of hot coils were still in Chinese New Year (CNY) holiday mode, with many not fully resuming operations.
As a result, HRC stocks at both the 37 surveyed mills and in commercial warehouses in the 33 cities tracked by Mysteel continued to rise, though at a slower pace.
Indeed, by February 6, hot coil stocks held by the sampled mills had increased by 2.3% on week to 969,500 tonnes, and those at the warehouses by 8% on week to reach 3.17 million tonnes as of the same day.
On Saturday February 8 (a substitute working day for many companies and organizations following the CNY break), China's spot price of Q235 4.75mm hot-rolled coil was assessed by Mysteel at Yuan 3,481/t ($476.4/t) including the VAT, largely flat from the previous assessment of Yuan 3,475/t on February 5, officially the first workday after the holiday.
Meanwhile, the rise in HRC derivatives prices was more noticeable last week, with the Shanghai Futures Exchange's most-traded May HRC contract gaining 1% by last Friday from the February 5 settlement price to close the daytime trading session that day at Yuan 3,449/t. The bourse was closed on February 8.
Source:Mysteel Global
