Posted on 11 Dec 2025
China's blast-furnace (BF) steel mills suffered deeper losses on finished steel sales in November, mainly due to price increases of some major steelmaking raw materials which lifted their production costs, according to Mysteel's latest monthly survey.
During November, the sampled steelmakers reported an average loss of Yuan 148/tonne ($21/t) on rebar sales, widening by Yuan 42/t from the previous month, the survey findings showed, while their average loss on sales of hot-rolled coil (HRC) deepened to Yuan 127/t as against the loss of Yuan 24/t in October.
Domestic BF steel producers also lost money on sales of medium plate last month, with the average loss reaching Yuan 100/t, which contrasts with the profit of Yuan 13/t they earned on plate sales during October, according to the survey.
Chinese BF mills' margins on finished steel sales (Unit: Yuan/t)
Products | Nov | Oct | MoM |
Rebar | -148 | -106 | -42 |
HRC | -127 | -24 | -103 |
Medium plate | -100 | 13 | -113 |
Source: Mysteel
Although prices of iron ore dipped in November, those of metallurgical coke increased, lifting the production costs of Chinese BF steelmakers and eroding their profitability on finished steel sales, Mysteel Global noted.
During November, Mysteel SEADEX 62% Australian Fines iron ore index registered $104/dmt CFR Qingdao on average, down $1/dmt on month, while the average price of second-grade metallurgical coke in North China reached Yuan 1,540/t, rising by Yuan 104/t from October, according to the survey.
Last month, the average production cost for making rebar among the sampled BF steelmakers increased by Yuan 70/t on month to Yuan 3,207/t including the 13% VAT, and those for making HRC and medium plate reached Yuan 3,369/t and Yuan 3,427/t respectively including the VAT, rising by Yuan 65/t and Yuan 82/t from the prior month.
Improved market sentiment led finished steel prices to recover slightly in the second half of November, though demand from end-users remained dull from the winter slowdown in steel consumption.
For example, China's national price of HRB400E 20mm dia rebar – an indicator of domestic steel-market sentiment – was assessed by Mysteel at Yuan 3,291/t including the 13% VAT at the end of November, higher by Yuan 31/t from one month earlier.
However, the recovery in HRC prices was limited, with the national price of Q235 4.75mm HRC under Mysteel's assessment standing at Yuan 3,318/t including the 13% VAT as of November 28, lower by Yuan 47/t on month though it had increased by Yuan 14/t from the recent low on November 14.
Source:Mysteel Global
