Posted on 26 May 2025
The price spread between cold-rolled coil (CRC) and hot-rolled coil (HRC) in China has narrowed steadily since mid-April, as CRC prices have declined more rapidly amid negative market sentiment and persistent supply-demand imbalance, Mysteel Global learned.
As of May 22, the price gap between the national averages for 1mm CRC and Q235 4.75mm HRC under Mysteel's assessment narrowed to Yuan 504/tonne ($70/t), significantly down from the recent peak of Yuan 745/t recorded on April 8.
The contraction in the spread has been driven primarily by a sharp decline in spot CRC prices, while HRC prices have remained largely range-bound during the same period.
Mysteel's assessment showed that as of May 22, China's national average price for 1mm CRC stood at Yuan 3,834/t including the 13% VAT, down by Yuan 251/t from April 8. In contrast, that of Q235 4.75mm HRC only dipped Yuan 10/t to Yuan 3,330/t including the 13% VAT.
Although market sentiment improved following the announcement of U.S.-China tariff reductions on May 12, the Chinese CRC market failed to gain significant support due to the persistent supply-demand imbalance, Mysteel Global noted.
Many Chinese mills have maintained high operating rates for CRC lines, encouraged by the positive profit margins. According to Mysteel's other survey, CRC output among the 29 steel producers nationwide totaled 881,400 tonnes over May 15-21, rising by 2.5% from early April.
Meanwhile, CRC inventories at traders' warehouses in the 29 Chinese cities under Mysteel's tracking climbed by 8.6% from early April to 2.3 million tonnes as of May 21, underscoring the weakness in downstream demand.
Source:Mysteel Global
