Posted on 02 Dec 2025
Production of hot-rolled coils (HRC) among the 37 Chinese steelmakers regularly surveyed by Mysteel continued rising during November 20-26, moving higher by 0.95% on week to 3.19 million tonnes, the latest survey results showed.
During the week, the HRC rolling capacity utilization rate among these sampled mills increased by 0.77 percentage point on week to average 81.5%, while the operational rate also gained by 1.56 percentage points to 79.69%, the results indicated.
More steelmakers resumed operations on hot strip mills after maintenance stoppages ended, contributing to the small rebound in HRC output, Mysteel Global noted.
HRC production may remain rangebound in the near term, market sources suggested. More worrying, they warned of the slowdown in the pace of destocking among steel mills and traders which points to weakening end-user demand.
By November 27, HRC stocks at the 194 commercial warehouses in the 55 Chinese cities Mysteel monitors stood at 4.37 million tonnes, lower by only 32,600 tonnes or 0.74% on week, while mills' inventories stayed flat on week at 780,200 tonnes.
On the other hand, steel market sentiment was buoyed slightly last week by news that the US Federal Reserve is more likely to cut interest rates this month, while in China, macro-economic meetings such as the annual Central Economic Work Conference to be held in Beijing in December are seen as giving the economy and steel consumption a lift. This led HRC futures prices in Shanghai to increase moderately last week.
On November 28, the most-traded HRC contract for January delivery on the Shanghai Futures Exchange ended the daytime trading session at Yuan 3,302/t ($467/t), higher by Yuan 29/t or 0.88% from the settlement price a week earlier, the bourse's data showed.
Riding the sentiment, Mysteel assessed the national price of Q235 4.75mm HRC higher by Yuan 9/t on week at Yuan 3,318/tonne including the 13% VAT last Friday.
Despite the recent HRC price rally, slackening end-user demand is likely to limit the flat steel's upside potential, Mysteel Global understood.
Source:Mysteel Global
