Posted on 09 Jul 2025
Production of hot-rolled coils (HRC) among the 37 Chinese steelmakers Mysteel regularly monitors totalled 3.28 million tonnes during the week of June 26-July 2, inching up 0.3% or 9,000 tonnes on week and marking the third successive on-week rise, the results of Mysteel's weekly production survey show.
The hot-rolling capacity utilization rate among the sampled mills also rose 0.23 percentage point on week to average 83.83%, while their average operational rate remained flat at 81.25%, the data indicated.
The marginal increase in output was attributed to several mills adjusting their production plans to produce more HRC, according to the survey.
A market source in North China observed that local HRC production remained stable following recent maintenance work at several mills, and a gradual build-up of stocks is anticipated in the region.
Meanwhile, spot HRC trading activity improved slightly last week. The same source explained that rising prices in both the spot and futures markets, driven by supportive macroeconomic signals and production curbs on integrated mills in Tangshan in North China's Hebei province, encouraged some end-users to replenish inventories.
However, he remained cautious about whether the uptick in demand for hot coils would be sustained, given lingering pressure from weak fundamentals.
As of July 7, China's national price of Q235 4.75mm HRC under Mysteel's assessment had reached Yuan 3,255/tonne ($454/t) including the 13% VAT, higher by Yuan 24/t on week.
HRC inventories held by the 37 surveyed mills remained largely stable from the previous week at 783,200 tonnes as of July 3, up by a tiny 0.1% or 1,000 tonnes on week.
In parallel, the tonnage held in commercial warehouses in the 33 Chinese cities that Mysteel monitors nationwide had mounted by 1.4% or 36,700 tonnes on week to 2.67 million tonnes as of the same day, reflecting the muted demand from end-users.
Source:Mysteel Global
