Posted on 11 Jun 2026
Hot-rolled coil (HRC) production among the 37 Chinese steelmakers regularly surveyed by Mysteel inched down further during May 28-June 3, with the volume falling by a minimal 0.09% on week to 2.95 million tonnes, the results of Mysteel's latest survey showed.
Most hot strip mills operated by the 37 sampled mills continued operating normally during the survey week, Mysteel Global noted.
The average capacity utilization rate among the surveyed strip mills edged down by 0.08 percentage point on week to 75.42% during May 28-June 3, while their operation rate stood flat at 78.13%, according to the survey results. However, when compared with the same period last year, they were lower by 8.57 and 1.56 percentage points respectively, the survey findings indicated.
On the demand side, as the summer slow season for steel consumption kicks in, manufacturing firms generally remained cautious towards replenishing their hot coils, buying only enough to meet their immediate production needs.
By June 4, HRC inventories in the 194 commercial warehouses nationwide that Mysteel monitors had fallen by only 5,000 tonnes or 0.1% on week to remain high at 4.59 million tonnes, up by 28.1% on year, Mysteel Global noted.
Meanwhile, the stocks of coils held by the 37 surveyed mills had dropped by 17,400 tonnes or 2.4% on week to 712,000 tonnes as of the same day.
Concerning costs, though prices of imported iron ore have eased over the past two weeks – on June 5, the Mysteel SEADEX 62% Australian Fines index had dropped by another $3.65/dmt on week to $103.2/dmt CFR Qingdao – those of coking coal have strengthened sharply, impacting the profits of integrated steelmakers. Coal prices have soared from mine-safety inspections in North China's Shanxi province following the May 22 mine disaster, as reported.
On June 5, Mysteel Coking Coal Index, which tracks coking coal prices nationwide in China, reached Yuan 1,558.8/tonne ($229.8/t) including the 13% VAT, up by another Yuan 122.8/t or 8.6% on week.
The rises in coking coal and coke prices are expected to limit the downside potential in hot coil prices, while weak demand and mounting HRC inventories continue to weigh on the flat steel market.
Also on Friday, the national spot price of Q235 4.75mm HRC was assessed by Mysteel at Yuan 3,412/t including the 13% VAT, down by Yuan 13/t on week.
The same day, the most-traded HRC contract for October delivery on the Shanghai Futures Exchange closed at Yuan 3,381/t, up by a tiny Yuan 3/t or 0.09% from the settlement price one week before, the exchange's data showed.
Source:Mysteel Global
