Posted on 05 Nov 2025
China's hot-rolled coil (HRC) production among the 37 Chinese steelmakers regularly surveyed by Mysteel rose slightly further during October 23-29, higher by 0.34% to register 3.24 million tonnes, the results of Mysteel’s latest survey showed.
During the latest survey week, the HRC rolling capacity utilization rate among these sampled mills ticked up by 0.28 percentage point on week to stand at 82.66%, while the operational rate stayed unchanged for the second week at 79.69%, the survey results indicated.
Domestic steel mills kept steady operations at their rolling lines primarily because many mills could still enjoy profit margins on HRC sales. Besides, the positive macro news including progress in China-US trade negotiations last week also made it less desirable for steelmakers to cut back their production.
With trading activity improved amid upbeat sentiment, retail HRC inventories declined further last week. By October 30, HRC inventories at 194 commercial warehouses in the 55 Chinese cities Mysteel monitors moved down by 1.9% or 84,600 tonnes on week to 4.46 million tonnes.
However, the destocking pace still lagged behind previous years, with HRC inventories held by traders remaining relatively high so far for this time of the year, market sources noted.
Meanwhile, HRC stocks at steel mills inched slightly higher by 0.4% or 3,100 tonnes on week to 776,600 tonnes by October 30, according to Mysteel's assessment.
As macro stimulus wanes and the winter lull approaches, demand for HRC may retreat gradually, hinting possible accumulation in HRC stocks again in the coming months, especially amid a steady supply of this flat steel, Mysteel Global predicts.
On the other hand, the relatively firm cost support and macro-optimism hangover may hedge against part of the supply pressure, which is likely to underpin HRC prices in the short run.
By October 31, Mysteel assessed the national price of Q235 4.75mm HRC at Yuan 3,365/tonne ($472/t) including the 13% VAT, up by Yuan 32/t or 0.96% on week.
The same day, the most-traded HRC contract for January delivery on the Shanghai Futures Exchange ended the daytime trading session at Yuan 3,308/t, higher by Yuan 58/t or 1.8% from the settlement price a week ago, the bourse's data showed.
Source:Mysteel Global
