Posted on 11 Aug 2025
China's blast-furnace (BF) steel mills achieved better profits on finished steel sales in July, mainly due to the fast recovery in domestic steel prices, despite the mills' production costs increasing, according to Mysteel's latest monthly survey among 91 BF mills nationwide.
Last month, the average profit on rebar sales among the sampled mills registered Yuan 196/tonne ($27.3/t), higher by Yuan 129/t on month, while their profits on sales of hot-rolled coil (HRC) grew even more sharply on-month to reach Yuan 279/t, higher by Yuan 143/t.
The findings showed that the sampled steelmakers' average profit on sales of medium plate also increased to Yuan 335/t last month, which was Yuan 80/t higher compared with the June average.
Chinese BF mills' margins on finished steel sales (Unit: Yuan/t)
Products | Jul | Jun | MoM |
Rebar | 196 | 67 | 129 |
HRC | 279 | 136 | 143 |
Medium plate | 335 | 255 | 80 |
Source: Mysteel
China's finished steel prices increased rapidly in the second half of last month as positive market sentiment prevailed, buoyed by expectations regarding new policy measures to stimulate growth, as Mysteel Global reported.
On July 31, Mysteel assessed China's national price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment, at Yuan 3,407/t including the 13% VAT, higher by Yuan 196/t from one month earlier. At the same time, Mysteel's price assessment for Q235 4.75mm HRC jumped by Yuan 250/t on month to reach Yuan 3,481/t including the 13% VAT.
The significant growth in finished steel prices offset the rise in the production costs being borne by the domestic steel mills, Mysteel Global noted.
During last month, the average production cost of making rebar among the sampled BF steelmakers climbed by Yuan 103/t on month to Yuan 2,985/t including the 13% VAT, while the costs incurred by mills making HRC and medium plate increased by Yuan 152/t and Yuan 150/t respectively on month to Yuan 3,142/t and Yuan 3,163/t including the VAT, according to the survey.
The higher price of iron ore was chiefly responsible for the rise in the domestic mills' production costs. The Mysteel SEADEX 62% Australian Fines index averaged $99/dmt CFR Qingdao in July, up by $5/t on month, while the average price of second-grade metallurgical coke in North China dipped by Yuan 4/t on month to Yuan 1,165/t, the survey results showed.
Source:Mysteel Global
